Global Tax Free withdrew the third-party paid-in capital increase released on the 22nd after just one day. After disclosures on the transfer of the largest shareholder's equity and the paid-in capital increase were made together, backlash from small shareholders grew, leading to what is seen as a review of the fundraising plan.
Global Tax Free said in a disclosure on the 23rd, "We intended to proceed with a paid-in capital increase, judging that there would be a temporary surge in funding demand as we push overseas business," but added, "After a comprehensive review of our financial conditions, market conditions, and shareholder value enhancement, we determined that reviewing and using other funding methods aligns with the interests of both the company and shareholders."
In the market, criticism poured in that the structure let the largest shareholder sell equity at a premium while issuing new shares at a discount at the same time, lowering the acquirer's average purchase price. Global Tax Free shares fell 13.12% on the 23rd.
Kim Soo-hyeon, head of research at DS Investment & Securities, said in a Telegram message on the 23rd, "Global Tax Free will be caught as the first case under the amended Commercial Act for violating the duty of loyalty to shareholders."