This article was posted on the ChosunBiz MoneyMove (MM) site at 4:27 p.m. on Feb. 11, 2026.
Kim Seong-ho, CEO of Renew Medical and the No. 2 shareholder of KOSDAQ-listed Genebiotech, ignited a management control dispute by exercising shareholder proposal rights that include the cancellation of all treasury shares and the enactment of internal rules on mergers and acquisitions (M&A).
After the backdoor listing strategy for Renew Medical that Kim initially proposed fell through due to opposition from the current management, it was confirmed that he shifted to a hostile M&A through equity accumulation. He plans to immediately convene an extraordinary shareholders meeting and launch a full-scale bid to secure control, including replacing board members, if his demands are not accepted at the regular shareholders meeting in March.
According to the financial investment industry on the 11th, Kim formally submitted a shareholder proposal to the Genebiotech board late last month, centered on the cancellation of all treasury shares and the enactment of M&A internal rules. The proposal included a raft of concrete demands to strengthen management transparency, such as establishing a principle to cancel all repurchased and acquired treasury shares, introducing interim dividends as a shareholder return measure, quarterly execution reports, and regular disclosure of key indicators.
Along with this, he demanded that items that have a significant impact on shareholder value—such as dividends, treasury shares, capital policy, and strategic transactions—be formally placed on the board agenda with recorded reasons for and against, and that formal review procedures (internal rules) for M&A and strategic investment proposals be established.
Kim's side said, "Genebiotech, as a listed company, is required to enhance shareholder value and communicate faithfully with the capital market, but related institutionalization is insufficient," emphasizing the legitimacy of the proposal.
Genebiotech, founded in 2000, is a manufacturer of feed and veterinary drugs, and is a mid-sized company with a market capitalization of 40 billion won. The company did not pay dividends for four consecutive years from 2022 to 2025. However, as the possibility of a control dispute with the No. 2 shareholder surfaced, the company on the 6th announced a cash dividend of 50 won per share.
Kim's side holds that Genebiotech's retained earnings stood at 34.9 billion won as of the end of September last year, providing ample resources for additional dividends.
Genebiotech is currently 28.64% owned in total by founder and largest shareholder Lee Chan-ho, including the equity of related parties. Kim Seong-ho's equity ratio is 12.97% including Renew Medical's equity (6.40%), a difference of about 15%.
Renew Medical claimed that Kim continues to acquire equity and has secured two KOSDAQ-listed companies and others as white knights (friendly forces), making a proxy battle possible. In fact, after disclosing a 10.91% equity stake in August last year and changing his holding purpose from "simple investment" to "influence over management control," Kim increased his holdings to about 13% on the 4th of this month.
If the shareholder proposal fails, Kim's side plans to embark on a personnel overhaul by convening an extraordinary shareholders meeting. Citing the fact that Genebiotech's articles of incorporation do not limit the number of directors, they intend to appoint a large number of inside and outside directors to seize the board and proceed to replace the CEO. Genebiotech's board currently consists of five members: three inside directors including CEO Lee Chan-ho, one outside director, and one audit committee member.
A Renew Medical official said, "We plan to take active steps on the 26th at the regular shareholders meeting," adding, "The core of this shareholder proposal is to specifically press the company on long-lagging shareholder return measures to secure gains for ordinary shareholders."
Kim, meanwhile, is known as a "big-money" investor who has generated revenue by focusing on low price-to-book ratio (PBR) stocks. He has previously been named a major investor as the No. 2 shareholder of KOSDAQ-listed U.I.D and as holding more than 5% equity in KOSPI-listed Dongwon Metal. Renew Medical is a dental medical device company that Kim founded in 2009 after working as a sales representative at the Korea branch of the Swiss regenerative dentistry company Geistlich.