They claimed to be the illegitimate child of the chairman of a furniture company known for being a cash-rich individual in Gangnam. They even had their office in the company's building and displayed family photos of the chairman inside, making it hard for anyone to doubt.A spokesperson for a listed corporation on the KOSDAQ said,
This article was published on Mar. 18, 2025, at 2:33 p.m. on ChosunBiz MoneyMove.
Recently, relatively sound corporations listed on the KOSDAQ have been plunging into severe financial distress overnight. They point to Park as the cause. Victims claim they borrowed money at high interest rates secured by stocks from Park to secure funding, putting them in a crisis.
According to investment banking industry sources on the 18th, S, a lighting equipment company listed on the KOSDAQ, is facing difficulties in merging with A, an over-the-counter biotech company. They received correction requests from the Financial Supervisory Service five times, and last month, some of S's largest shareholder's shares were sold in a forced sale, causing the stock price to plummet. These companies are expected to announce the withdrawal of the merger soon. However, the company has officially explained that it will continue to pursue the merger.
According to insiders, the background of the crisis faced by A and S involves a 'big player' in private lending in Myeongdong. Summarizing their explanation, as of the end of September last year, A's cash and cash equivalents were at 5.9 billion won. Since they were spending 4 billion won quarterly on expenses including employee wages, selling expenses, and clinical costs, securing funding was urgent.
The management expected the merger to proceed as planned and borrowed money secured by stocks and other assets. The problem was that they used private loans rather than institutional ones like securities firms or savings banks. An insider familiar with the situation noted, "The initial conditions were good, but when it came time to contract, the interest rate started at 3.5% per month and increased every month, plus there were fees on upfront payments." They added, "Even when trying to find better conditions elsewhere, I believe the loan sharks had already intervened, leaving no other options."
Ultimately, the management borrowed again from private lenders to repay this, introducing Park into the equation. They also borrowed money from Park secured by stocks, but it is presumed that Park had already disposed of all the collateral stocks on the market even though the repayment deadline had not arrived. Consequently, S's largest shareholder faced a situation where they lacked the equity necessary for the merger. Another industry insider explained, "I understand that Park is associated with the heir of a major conglomerate who was arrested for stock manipulation in the past."
Park also appears in TERA SCIENCE, a manufacturer of hydraulic fittings that experienced a sharp rise in stock prices due to lithium-themed stocks and is currently in a trading halt after a crash. Park is the de facto owner of TERA SCIENCE and also the chairman of Davolink, a telecommunications equipment company acquired in November 2023.
The former management of TERA SCIENCE and minority shareholders claimed that "the current management, backed by Park, borrowed high-interest loans without equity during the acquisition process of TERA SCIENCE, using these funds for acquisition, and later pocketed profits through embezzlement, misappropriation, and stock manipulation." Cash at TERA SCIENCE, which reached 47.7 billion won at the end of March 2023, shrank to around 1 billion won by the third quarter of 2024.
There are suspicions that Davolink attempted to elevate its stock price by linking itself with Min Hee-jin, the former CEO of ADOR, battery industry figures, and Lee Jae-myung, the leader of the Democratic Party. The market suggests that the financially strapped parent company TERA SCIENCE tried to boost Davolink's valuation to sell it at a higher price.
Park and the current management face allegations of privately pocketing a premium from EnforceSpace when they sold Davolink shares in July 2024. These shares were provided as collateral to a loan shark, making normal contract fulfillment impossible, and during this process, foreclosure and lawsuits involving Davolink and TERA SCIENCE's real estate arose. EnforceSpace requested forensic investigations and related accounting audits from Samduck Accounting Corporation, the external auditor of Davolink, on the 7th.
ChosunBiz called one of Park's contact numbers, but the line was disconnected.