KOSPI-listed Inscobee will appoint a new CEO and change its corporate name. It plans to make a fresh leap through sweeping management reform.
Inscobee said on the 1st that it held an extraordinary shareholders meeting on the 26th and appointed Song Byung-kwon as the new CEO.
At this extraordinary shareholders meeting, the entire existing management resigned. Inscobee said the leadership change signifies a complete break with the past "management risks" that the market and shareholders had worried about.
In a shareholder letter released that day, new CEO Song Byung-kwon said the company would completely resolve the management uncertainties of the past that the market and shareholders had worried about and establish an internationally aligned internal control system and a responsible management framework under the new leadership.
At this extraordinary shareholders meeting, a proposal to change the corporate name was also approved. Inscobee will change its name to its core brand, "freeT." The aim is not a simple signboard swap but to unify the company identity under "freeT," the No. 1 MVNO brand that has driven substantive revenue. By doing so, it plans to concentrate resources on its core business, which had been dispersed under the banner of diversification, and achieve a swift turnaround in results.
Inscobee also signaled tough restructuring to secure financial soundness. It plans to boldly sell noncore asset and equity that have shown no results for years or created no synergy to secure immediate cash liquidity, prioritizing the proceeds for short-term debt repayment and future new businesses. Earlier, the company partly resolved financial risk factors such as capital impairment through a change of the largest shareholder and a paid-in capital increase.
Progress has also been made on the issue of U.S.-listed investment asset that had weighed on Inscobee's financial structure. The new management led negotiations with APUS, the U.S. Apimes affiliate, to eliminate litigation risk and normalize market trading. A digital asset verification accounting firm selected by the New York Stock Exchange (NYSE) completed a thorough review, and normal stock trading resumed on the 6th of last month through an agreement among the investment parties.
A structure has been put in place for investment asset, previously booked as losses through bad-debt recognition on the books, to convert into valuation gains and capital gains. As a result, a strong momentum is expected to improve Inscobee's financial structure.
Going forward, Inscobee plans to work closely even after APUS merges with MindWave to maximize the corporate value of the U.S. local entity. Through this, it plans to secure financial liquidity and invest in upgrading the domestic freeT business infrastructure.
Song said, "This corporate name change and leadership transition is a 'second founding' that completely overhauls the corporation's constitution and the start of genuine innovation," adding, "We will be reborn as a solid corporation that earns fair market valuation by focusing solely on enhancing shareholder value and normalizing the corporation, and by carrying out grueling reforms."