[Alpha Biz= Kim Jisun] Dong Sung Pharmaceutical announced on June 25 that an embezzlement case involving approximately KRW 17.7 billion (approx. USD 12.8 million) has been reported, representing 30.6% of the company’s equity capital.
According to the company’s regulatory filing, the incident was brought to light after the company’s standing auditor, Mr. Ko Chan-tae, filed a police complaint on June 24 against CEO Na Won-kyun and two other registered executives. The complaint alleges embezzlement and violations of the Capital Markets Act. The case has been submitted to the Dobong Police Station in Seoul.
The company stated, “We will take appropriate action in accordance with legal procedures and cooperate fully with the relevant authorities during the investigation.”
Dong Sung Pharmaceutical is currently embroiled in a management dispute between second- and third-generation members of the founding family. The conflict involves Chairman Lee Yang-gu, son of the late founder Lee Sun-kyu, and CEO Na Won-kyun, the son of Chairman Lee’s sister, Lee Kyung-hee, who heads Oh Mas Sharif Cosmetics.
In a separate development, Dong Sung Pharmaceutical entered court receivership on June 23. As a result, control over the company’s operations and assets has been transferred to a court-appointed administrator. The court named CEO Na Won-kyun and Mr. Kim In-soo as joint administrators.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
