This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:37 p.m. on Jul. 7, 2026.
TELCON RF PHARMACEUTICAL, KPM Tech, and NUON, KOSDAQ-listed companies that were tied by cross-shareholdings, moved to resolve their delisting risks through a chain of third-party allotment capital increases starting with payment by the de facto owner. Although the de facto owner is putting in personal funds, the successive capital increases will minimize cash outflows outside the group while sharply boosting market capitalization and allowing the cross-shareholding chain to be severed.
According to the Financial Supervisory Service electronic disclosure system on the 7th, TELCON RF PHARMACEUTICAL, KPM Tech, and NUON will each carry out third-party allotment capital increases of 5 billion won, 22.5 billion won, and 19 billion won. The three capital increases will begin with CEO Kim Ji-hoon's personal company and proceed as a chain flow of funds among affiliates.
The three companies were in a cross-shareholding relationship with intertwined equity ties. TELCON RF PHARMACEUTICAL is the largest shareholder of KPM Tech with 32.68% equity, and KPM Tech holds 64% of NUON. And NUON is the largest shareholder of TELCON RF PHARMACEUTICAL with 19.21% equity. While the three listed companies are entangled in cross-shareholdings, the person who controls the three is CEO Kim Ji-hoon of TELCON RF PHARMACEUTICAL and KPM Tech.
All three companies fall short of the delisting threshold of a 20 billion won market cap that took effect in July. In Feb. this year, the government announced a "reform plan for swift and strict delisting of insolvent companies" and said it would implement ahead of schedule the delisting requirements that had been slated for introduction. Accordingly, the KOSDAQ market delisting threshold of a 20 billion won market cap, which had been scheduled to take effect in Jan. next year, has applied since July.
Once the funds from these capital increases are fully paid in, all three companies are expected to exceed the delisting threshold. Except for CEO Kim, who effectively controls the three companies and must pay in 5 billion won, the use of internal funds will allow an effective increase in market capitalization through capital increases with minimal cash outflow.
TELCON RF PHARMACEUTICAL's market cap stood at 16.3 billion won based on the closing price on the 7th, putting it at risk of delisting. However, if it receives 5 billion won through this capital increase from CEO Kim Ji-hoon's personal company, Evercore Investment, it is expected to catch a breather in the face of delisting risk.
KPM Tech's market cap is only 14.8 billion won, but it is set to receive a total of 22.5 billion won from TELCON RF PHARMACEUTICAL. Of this, 14.5 billion won will be paid in cash by TELCON RF PHARMACEUTICAL, and the remaining 8 billion won will be executed by offsetting previously borrowed borrowing fund.
Including the funds raised through the capital increase, KPM Tech will inject a total of 19 billion won into NUON's capital increase. Of the 19 billion won, 1.5 billion won will be used as operating funds, and the remaining 17.5 billion won will be executed as equity investments in two unlisted companies, GIEL Investment and GSP. NUON's market cap, at 15.1 billion won, is expected to exceed the 20 billion won threshold if the capital increase payments are made as planned.
They are resolving the delisting reasons solely through movements of funds among affiliates, and this strategy works because the cash holdings of listed companies are not being valued by the market. A KOSDAQ industry official said, "To take TELCON as an example, it had more than 14 billion won in cash on hand, but its market cap was only 16 billion won," and noted, "This situation is worsening due to the abnormal phenomenon of funds flocking to only certain sectors and the delisting rules based on market capitalization, which (lead investors to avoid small- and mid-cap stocks)."
The chain of cross-shareholdings among them is also expected to be severed by this capital increase. NUON had been the largest shareholder of TELCON RF PHARMACEUTICAL, but with this capital increase, Evercore Investment, CEO Kim's personal company, is set to become the new largest shareholder. Accordingly, the governance structure will be reorganized as Evercore Investment→TELCON RF PHARMACEUTICAL→KPM Tech→NUON.