This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:35 p.m. on Feb. 20, 2026.
As GeneOne Life Science's paid-in capital increase has struggled for half a year, the market is focused on whether the payment will happen. Exion Group, which was supposed to provide the funds late last year, dropped out and a white knight newly appeared, but has stuck to an ambiguous stance.
According to the investment banking (IB) and capital markets industries on the 20th, GeneOne Life Science plans to finalize a third-party allotment paid-in capital increase to the Co-Growth Investment Association No. 1 (Co-Growth Association) on the 25th. The funds for this paid-in capital increase are to be raised by an unlisted Fintech company, company P, contributing to the Co-Growth Association.
GeneOne Life Science is a chronically loss-making company. It has maintained the unusual record of losses for 21 consecutive years from 2004 to 2024. It also posted a consolidation operating loss of 30 billion won through the third quarter last year, making it highly likely the consecutive loss streak will extend to 22 years. On top of that, cash and cash equivalents are down to around 1 billion won, scraping the bottom.
GeneOne Life Science has pursued a paid-in capital increase since September last year to break its cash crunch and normalize management. But even that has not been easy. The payer and deadline for the capital increase have changed several times, and payment has not been made for nearly half a year.
The Co-Growth Association, which took over management control after a management dispute with former major shareholder and CEO Park Young-geun last year, stepped up as the payer for the capital increase, but with no money on hand, the likelihood of payment is unclear. To secure the funds, additional contributions are needed. Initially, Exion Group, an existing association member, was to contribute about 9 billion won, but, possibly due to a cash crunch, Exion Group dropped out, and late last year company P suddenly emerged as a new contributor.
After company P appeared, the payment date for the capital increase was pushed to the 9th, and the size was adjusted from about 10 billion won to around 8 billion won. However, payment was not made on the 9th either, and the payment date has again been postponed to the 25th.
Company P has not clarified its position regarding participation in this capital increase. When it was first named in GeneOne Life Science's capital increase disclosure on Dec. 23 last year, it maintained that it had nothing to do with the increase. It said investment in GeneOne Life Science was unrelated to them and that they were unaware of the disclosure.
But it recently changed course and effectively acknowledged the possibility of participating in the capital increase. However, it avoided giving a definite answer on a concrete payment plan.
The CEO of company P recently said, "This disclosure is a bit different from last time," and added, "Whether we participate in the capital increase is such an important matter that it is difficult to comment separately."
While the payment for the capital increase has been delayed, GeneOne Life Science's ownership structure has also changed. Former CEO Park Young-geun, the previous largest shareholder, sold shares on the market, and the Co-Growth Association became the new largest shareholder. From the Co-Growth Association's perspective, after securing management control through a dispute with Park in Aug. last year, it effectively rose to the largest shareholder without a capital increase.
A source in the capital markets industry said, "The Co-Growth Association has become the largest shareholder, but with the current equity alone it is difficult to maintain stable control, so a capital increase is necessary," while adding, "Given GeneOne Life Science's current financial condition and pipeline progress, normalizing management with just an 8 billion won capital increase does not look easy."