Aekyung Industrial Merges with 100% Subsidiary 'ONE THING'... Strengthening Competitiveness in the Cosmetics Business

Aekyung Industrial is stepping up to improve management efficiency by merging with its 100% wholly-owned subsidiary 'ONE THING', which is engaged in the manufacturing, distribution, and sales of cosmetics.

According to the Financial Supervisory Service's electronic disclosure on the 9th, Aekyung Industrial announced that it held a board of directors meeting on the 8th and resolved to merge with its subsidiary ONE THING. Following the merger, Aekyung Industrial will be the surviving company, while the merged company, ONE THING, will be dissolved and extinguished. The merger date is June 12, 2026, and the expected date for the merger registration is June 16.

This merger is a small-scale merger without a capital increase, conducted while the surviving company, Aekyung Industrial, owns 100% of the shares of the disappearing company, ONE THING. Since no new shares will be issued, the merger ratio is calculated as 1 for Aekyung Industrial to 0 for ONE THING. Following the completion of this merger, there will be no changes to Aekyung Industrial's total number of issued shares, capital stock, or the shares owned by the largest shareholder and the equity structure.

Aekyung Industrial explained the purpose of the merger as "enhancing management efficiency and strengthening business competitiveness." Specifically, it expects to reduce unnecessary expenses through the integrated operation of the organization and further strengthen its business competitiveness by expanding its cosmetics portfolio through ONE THING.

As this merger is proceeding under the procedures for a small-scale merger, appraisal rights for opposing the merger will not be granted to Aekyung Industrial shareholders, and the general shareholders' meeting approval for the merger will be replaced by the board of directors' approval.

However, in accordance with the Commercial Act, if shareholders owning 20% or more of the total issued shares of Aekyung Industrial notify their opposition to the merger in writing within two weeks from the merger announcement date, the merger cannot proceed as a small-scale merger. The period for receiving notices of opposition is from April 23 to May 7.