This article was posted on the ChosunBiz MoneyMove (MM) website at 2:20 p.m. on Dec. 31, 2025.
Online e-commerce corporations Exion Group withdrew its investment plan in GeneOne Life Science. Exion Group, together with Daeho AL, had invested through the Companion Growth Investment Fund No. 1 (Companion Growth Fund) and fought a management rights dispute with the entire previous management of GeneOne Life Science. After the dispute, the Companion Growth Fund, which seized management rights, held complete largest shareholder status and was pushing for a paid-in capital increase to bolster GeneOne Life Science's funding capacity, but it was hit by the negative development of Exion Group's withdrawal.
According to the Financial Supervisory Service electronic disclosure system and the capital markets industry, Exion Group had planned to contribute 9 billion won of the 16 billion won it was raising through a paid-in capital increase to the Companion Growth Fund, but it withdrew its investment plan and decided to use the funds for company operations.
With Exion Group withdrawing its contribution to the Companion Growth Fund, the likelihood of the fund's plan to become the largest shareholder of GeneOne Life Science has greatly diminished. The Companion Growth Fund is currently the second-largest shareholder of GeneOne Life Science and has secured management rights through the dispute. However, the fund's equity stake in GeneOne Life Science is only about 8%, so to exercise management rights stably it is essential to acquire additional equity to become the largest shareholder.
Originally, the Companion Growth Fund planned to become the largest shareholder 'peacefully' through two third-party allotment paid-in capital increases. Although the 10 billion won paid-in capital increase was completed by offsetting existing borrowing funds, the 26 billion won paid-in capital increase failed. This is why the Companion Growth Fund ended up in an ambiguous position as the second-largest shareholder. At the time of the 26 billion won paid-in capital increase, the paid-in capital increase was canceled after Exion Group broke its payment promise.
GeneOne Life Science has operated solely on outside capital while posting losses for a full 21 years from 2004 through 2024. As of the third quarter, GeneOne Life Science's cash and cash equivalents amount to only about 1 billion won, while short-term borrowing funds alone total 8 billion won. In other words, it is a situation where funds must be raised quickly.
With Exion Group deciding not to contribute funds, there are forecasts that securing paid-in capital increase proceeds will again be difficult. In fact, after the paid-in capital increase plan was first released in September, the timetable changed several times and the payment was scheduled for Oct. 2025, but it has now been postponed to Feb. 2026.
There is also analysis that Exion Group's cancellation of its contribution had been foreseeable. Exion Group has limited capacity for outside investment, having faced prolonged poor performance that nearly led to a delisting eligibility review. Exion Group, which posted losses from 2021 through 2024, intends to seek a performance turnaround through new businesses such as construction, manufacturing and robotics. In 2025, it attempted to pursue a virtual asset business as a new venture but abandoned the project after the Korea Exchange (KRX) recommended suspension during the delisting eligibility review process.