This article was displayed on the ChosunBiz MoneyMove (MM) website at 3:41 p.m. on Oct. 30, 2025.
Kim Jin-tae, the U2Bio CEO from Youngdong High School, which became known as a "startup military academy" for producing many venture entrepreneurs, and Lee Jae-woong, the former SOCAR CEO, have joined forces for a new challenge. The former CEO Lee made an in-kind contribution of part of his SOCAR shares to U2Bio, creating an equity relationship between U2Bio and Lee.
Kim Jin-tae is said to be devising a plan to grow U2Bio into a venture holding company over the long term. With fellow Youngdong High School alumnus Lee Jae-woong, who has extensive successful startup experience, lending support, the industry is paying close attention.
U2Bio, a KOSDAQ-listed company, on the 29th announced a paid-in capital increase worth 9 billion won. This capital increase is being carried out in a form that differs somewhat from typical fundraising. Instead of issuing new shares to secure cash, the company will receive SOCAR shares.
Through this capital increase, 2,257,000 new shares will be issued, and they will be allotted to former SOCAR CEO Lee Jae-woong. Lee plans to make an in-kind contribution of about 778,000 SOCAR common shares (about 2.3%) that he holds. The new U2Bio shares to be allotted to Lee will be locked up for one year.
In effect a stock swap, U2Bio and former CEO Lee Jae-woong will form a special relationship, albeit with a small equity stake. In particular, since Lee conducted a tender offer for SOCAR shares earlier this year to defend management control, the industry is attaching significance to Lee stepping up to contribute his equity.
U2Bio said the paid-in capital increase was to attract a strategic investor for new business development. According to the industry, the new business the company refers to is venture investment.
In fact, CEO Kim Jin-tae is a seasoned expert in startups and ventures. He founded Medidas (now UBcare), which began as an in-house venture of Medison (now Samsung Medison) acquired by Samsung, and sold it to ISU Group (which later sold it again to SK Chemicals). In 2009, he founded U2Bio, whose main businesses include medical IT solutions and diagnostic testing services, sold a substantial portion of equity to the Nongshim family, and listed the company on the KOSDAQ market.
Currently, NDS, a subsidiary of Mega Mart led by Shin Dong-ik, the third son of Shin Chun-ho, the founding chairman of Nongshim Group, is the largest shareholder of U2Bio. Although the largest shareholder has changed, CEO Kim Jin-tae remains a major shareholder and continues to lead the company.
CEO Kim Jin-tae and former CEO Lee Jae-woong are alumni of Youngdong High School. Kim is from the 8th graduating class and Lee from the 11th, and they are said to have built a friendship by sharing their experiences of growing companies they founded and successfully exiting (recovering investments).
However, there was dissent within the company over CEO Kim Jin-tae's decision. Some members of the management expressed opposition to the paid-in capital increase. Some executives pointed out that, since the company's core business is in the medical IT field, it lacks the resources to enter a new business such as venture investment, and that the decision is not desirable in terms of the company's profit or growth.
There were also concerns that the entry of former CEO Lee Jae-woong as a major shareholder would increase uncertainty in the governance structure. The executives who expressed opposition were officers of an affiliate of the largest shareholder, NDS.