IL-YANG PHARM said on the 10th it won a final ruling in a lawsuit demanding dividends of undistributed earnings from its Chinese joint venture Tonghua IL-YANG. With this, IL-YANG PHARM will recover all undistributed earnings that had been tied up for more than three years.
According to the company, the Jilin High People's Court, the court of final appeal, recently ordered Tonghua IL-YANG to pay about 18 billion won in undistributed earnings it holds as dividends to IL-YANG PHARM and related parties.
Earlier, the first- and second-instance courts in China ruled that "the reasons given by Tonghua IL-YANG for not agreeing to the distribution of profits lack rationality and are regarded as an abuse of rights by the Chinese shareholders that infringes on the interests of the Korean shareholders."
IL-YANG PHARM said it plans to use the recovered dividend profits "to strengthen financial stability and open new sales channels in the Chinese market," adding, "We will solidify our market dominance by boosting sales through strategic business expansion."