Largest Shareholder Beomgyu Ko Increases Stake to 49.95% via Third-Party Allotment, Raising Dilution and Governance Concerns
Largest shareholder Beomgyu Ko acquired 3,753,351 shares through a third-party allotment rights offering on June 18, 2026, while related party Soyeon Choi acquired 625,559 shares, raising their combined stake from 45.31% to 49.95%.
The rights offering increased total outstanding shares by 18.9% from 30,956,622 to 36,814,550, diluting existing shareholders. The issuance price of 1,119 KRW represents a 16.9% premium to the current market price of 957 KRW.
The approximately 4.9 billion KRW in proceeds were raised via loan offset, used solely to strengthen control rather than for growth investment, which is a negative signal for minority investors.
Independent director Hyuncheol Shin reduced his stake through open market sales and subsequently returned short-swing profits to the company, highlighting insider trading risk.
[AI Summary]While the controlling shareholder's increased stake may provide management stability, the 18.9% dilution harms existing shareholder value, the use of funds for control rather than expansion, and the insider trading incident may weigh on the stock price in the near term.