Hanyang Securities Faces Sudden Halt on 50 Billion Won Paid-In Capital Increase... Existing Shareholders File Injunction to 'Ban Issuance of New Shares'

Hanyang Securities (CEO Kim Byung-chul) is facing the risk of a complete suspension of its 50 billion won large-scale fundraising plan, which was being promoted for its entry into new businesses, due to legal action taken by existing shareholders.

According to the Financial Supervisory Service's electronic disclosure system on the 3rd, a corporate entity representing existing shareholders and three other individuals filed a lawsuit for an 'injunction to prohibit the issuance of new shares (Case No. 2026 Kahap 1426)' against Hanyang Securities at the Seoul Southern District Court on the 2nd, and Hanyang Securities disclosed that it received and confirmed the complaint on the 3rd.

The applicants (plaintiffs) requested an injunction to ban the issuance of 2,380,952 new registered common shares, which Hanyang Securities is currently preparing to issue based on a board of directors' resolution held on June 25.

The paid-in capital increase involves 2,380,952 common shares at an issue price of 21,000 won per share, amounting to a total of 49,999,992,000 won (approximately 50 billion won). The allocatee is the largest shareholder, 'KCGI No. 2 Private Equity Limited Partnership', and the raised funds were scheduled to be used entirely as operating capital to promote new businesses such as the over-the-counter derivatives business. The originally scheduled payment date for the funds is July 8.

The court's hearing date for this injunction application is scheduled for July 7. Hanyang Securities stated through a public disclosure, "We plan to actively respond to and defend against this lawsuit," adding, "If there are any changes to the payment schedule for the paid-in capital increase decision based on the hearing results, we plan to submit a corrected disclosure."