This article was displayed on the ChosunBiz MoneyMove (MM) site at 9:52 a.m. on Jun. 4, 2026.
Daeho AL, once a blue-chip but now facing delisting risk on the KOSPI, is embroiled in a management control dispute, and some in the capital market say the current largest shareholder's low equity stake means there is a fair chance control could shift at the shareholders meeting. On the other hand, there is an analysis that hidden votes on the side of the largest shareholder reach 10%. The explanation is that there is a group effectively aligned with the largest shareholder and, if they join forces, there should be no problem defending control.
However, this scenario could trigger legal turmoil. Because they are related parties but did not file a joint holding report, some say their voting rights could be restricted.
According to the capital market industry on the 4th, Daeho AL has recently been in a control dispute with major investor J&J Asset Management and minority shareholders. At the extraordinary shareholders meeting on the 11th, proposals to appoint executives from both the current management and J&J Asset Management will be handled simultaneously. As minority shareholders also rally their equity separately, the dispute over control is expected to intensify.
Daeho AL failed to receive an opinion in last year's audit report and is now undergoing a substantive review of listing eligibility. In addition, since April, multiple disclosures have been made of embezzlement and breach of trust allegations involving former and current executives, adding grounds for the substantive review. The company says it will submit an improvement plan to the Korea Exchange (KRX) to prevent delisting, but with the KRX accelerating the removal of distressed companies and considering the current operating conditions, avoiding delisting appears difficult.
As the company fell into delisting risk, minority shareholders and institutional investors who invested in Daeho AL began a control dispute, citing normalization of management.
On the surface, defending control looks tough for the current management. As of the end of the first quarter, the largest shareholder BizAlpha's equity stake in Daeho AL, including related parties, is only 8.97%.
The swing factor is friendly forces. Some say there may be more friendly equity on Daeho AL's side that has not been disclosed. The five investors who appeared in a recent disclosure on a change of largest shareholder in Daeho AL—The Uni No.1 Association, US Dream Investment Association No.1, BK Investment Association, Studio OB Bears, and SWL—are the key. In March, they jointly tried to sell 12 million shares they held to Daeho New Technology Investment Association for 12 billion won but failed because the interim and final payments were not made.
In other words, the approximately 13.78% equity they hold could be friendly equity for the current management. The flow of funds also suggests they may be a community of common interest.
The flow of funds among them began last August when Daeho AL sold convertible bonds (CB) it held to The Uni No.1 Association. At the time, Daeho AL sold 9 billion won worth of the 20th CB issuance to The Uni No.1 Association for 10.8 billion won, securing cash.
Subsequently, in the fourth quarter of last year, Daeho AL lent a total of 8.9 billion won—4.9 billion won to SWL, 300 million won to US Dream Investment Association No.1, and 3.7 billion won to Studio OB Bears. Including the 2 billion won provided in the first quarter of last year to BK Investment Association in the form of a capital contribution, the total is 10.9 billion won, similar to the CB proceeds previously received from The Uni No.1 Association.
However, it is not clear whether the source of the lending funds was the CB sale proceeds. Still, because they jointly entered into an equity sale contract, the view that there is a close relationship among them is gaining traction.
An industry source said, "Those entities are known to have connections with individuals suspected of embezzlement and breach of trust," and added, "The fact that those involved in Daeho AL's fund flows jointly entered into an equity sale contract indicates deep financial ties."
As the control dispute escalates, the current management needs to rally friendly equity as much as possible. However, the five holders including The Uni No.1 Association could face voting right restrictions on their holdings. Under the Financial Investment Services and Capital Markets Act, if the combined equity of related parties exceeds 5%, an equity disclosure must be made, and if not, voting rights on that equity are restricted. But each of them individually holds less than 5%, and they have not made any equity disclosures since acquiring their stakes.
Related parties are individuals or corporations holding equity that are in a special relationship, or joint holders who jointly acquire or dispose of shares. Given that they tried to dispose of equity together, some industry officials say a combined equity disclosure should have been made as related parties.
An industry official said, "The core of this controversy will be the source of funds for their equity purchases and whether there were internal agreements," adding, "It looks set to be the biggest issue in the control dispute."
Daeho AL says it is difficult to verify the allegations. A company official said, "Regarding the flow of funds, the company is currently not in a position to track it, and if there is a problem, investigative authorities will uncover it," adding, "We also cannot know about whether a combined equity disclosure is required because the disclosure obligation does not rest with Daeho AL."