The current management of Dong Sung Bio Pharm rebutted allegations from Brand Refactoring, the largest shareholder, regarding the illegal diversion of company funds and price manipulation, stating it was "a malicious attack based on distorted data" and that they would take legal action for charges including the forgery of private documents.
On the 21st, Dong Sung Bio Pharm stated, "Brand Refactoring and Lee Yang-gu, former chairman of Dong Sung Bio Pharm, have repeatedly made similar claims through various incidents, including the suspension of their duties, but the court has dismissed or not accepted them all," adding, "In particular, in the case of the suspension of duties, the court dismissed the case on the grounds that it is difficult to conclude that the current management's execution of duties is unlawful."
Regarding the 'fact confirmation letter from partner company Lumax', which was disclosed as evidence that company funds were borrowed for stock transactions, the company explained, "Director Lee Beom-gu did not draft or seal the document, and to prove this, a signature denial confirmation was submitted to the court." Dong Sung Bio Pharm is preparing legal actions, believing that the document constitutes forgery of private documents.
They also clarified that the contents of the telegram message disclosed as evidence by the largest shareholder were not instructions for price manipulation, but rather orders to retrieve and repay advances made during the former chairman's tenure. Dong Sung Bio Pharm emphasized, "It was merely a legitimate measure to recover company funds and reduce shareholder damage, not illegal price manipulation."
They added, "The actual illegal outflow of company funds and interference in stock prices was by Lee Yang-gu and his associates," revealing the financial flow through special relationships that Lee Yang-gu effectively controlled, including Omasharif, Lumax, and DNL Commerce. In particular, it pointed out that these companies were effectively owned by Lee Yang-gu himself and his family and acquaintances.
Dong Sung Bio Pharm said, "The false claims aimed at the current management are ultimately an attempt to facilitate Lee Yang-gu's return, and we will resolutely respond to attempts to obstruct the legitimate recovery process." They added, "We will do our best to prevent confusion among shareholders and resume transactions."
Earlier, Brand Refactoring released related materials, claiming to have confirmed evidence that current management including CEO Na Won-kyun, Executive Director Won Yong-min, and Director Namgung Kwang had illegally diverted company funds for stock manipulation. Former chairman Lee Yang-gu and CEO Na Won-kyun are uncle and nephew, and the management dispute began when the former chairman sold his stake of 2,819,673 shares (10.8%) to Brand Refactoring in April this year. Currently, Brand Refactoring holds a 14.41% stake in Dong Sung Bio Pharm.