KGC Life & Gin Executes 15 Billion Won Paid-in Capital Reduction... Reduces Capital by 85%

An affiliate of the KT&G Group, KGC Life & Gin, will execute a large-scale paid-in capital reduction that decreases its capital by over 80% to improve the efficiency of its fund management.

According to the Financial Supervisory Service's Electronic Disclosure System on the 21st, KGC Life & Gin announced that it has decided on a paid-in capital reduction to cancel 15,495,868 common shares.

The capital reduction ratio reaches 85.2%. Accordingly, the number of issued shares after the reduction will plummet from the existing 18.18 million shares to 2,684,132 shares, and the capital will also be significantly reduced from 90.9 billion won to 13.4 billion won.

This capital reduction will be conducted as a paid-in capital reduction, which pays shareholders compensation for the cancelled shares. The purchase price per share has been set at 968 won. Considering the number of shares to be cancelled, the total capital reduction payment the company will pay to shareholders is estimated at a scale of 15 billion won.

Through the disclosure, the company stated the reason for the capital reduction as "enhancing the efficiency of fund operations."

The period for creditors to submit objections is until December 18, and the base date for the capital reduction is December 19.