Goryeo Amyloid's stock has made headlines recently, surging by 26.04% to close at 1,065,000 won on March 12, 2025, amid a heated management control dispute. This significant upswing is connected to recent legal battles and the renewal of conflict over voting rights.
According to market reports, the stock price of Goryeo Amyloid recovered to the 1,000,000 won range just five months after the beginning of the management dispute at the end of December 2024. Institutional investors led the charge by net purchasing shares worth 156 billion won, reflecting heightened interest amid the turmoil.
On March 7, 2025, the Seoul Central District Court partially approved Goryeo Amyloid's appeal to challenge the court's previous injunction aimed at limiting the voting rights of Youngpoong and MBK Partners. This legal battle roots back to arguments made during Goryeo’s extraordinary general shareholders' meeting, wherein both entities claimed their voting rights had been unfairly restricted.
Legal expert Kim Kwang-joong from Sambo Law Firm stated, "A circular investment structure of physical companies is difficult to view favorably," emphasizing the core concerns about the perceived governance issues arising from the company's financial maneuvers. Goryeo Amyloid has been accused of employing this structure to restrict voting rights unreasonably, thereby distorting management control within the company.
The situation escalated when the Fair Trade Commission launched investigations on March 11, 2025, focusing on whether Chairman Choi Eun-Bum’s actions constituted violations of corporate governance regulations. The legal scrutiny primarily revolves around the creation of mutual investment frameworks and whether these arrangements unfairly limit shareholders' voting capabilities.
On March 12, 2025, Goryeo Amyloid announced plans to hold another board meeting on March 13 to finalize the agenda for its regular shareholders' meeting scheduled for the end of the month. The stakes remain high, as the court has ruled favorably on implementing cumulative voting for this meeting, which could significantly shift power dynamics by allowing minority shareholders to consolidate their votes.
The combined voting right stake of Youngpoong and MBK Partners stands at 46.7%, surpassing Chairman Choi's estimated 39% when preferential shares are included. Despite this numerical advantage, the introduction of cumulative voting could present challenges for their management strategy during the forthcoming meeting.
Interestingly, this broader institutional investor interest highlights a potential pivot from minority shareholders, as Goryeo looks to bolster support to fend off potential hostile ownership attempts by the Youngpoong-MBK alliance. Traders are watching for signs of which direction the minority holders will lean as the issues of governance and financial strategy multiply.
Legal experts predict the management dispute may endure over the long term, with Chairman Choi's faction likely searching for ways to defend their managerial authority. The upcoming shareholders' meeting is positioned as the next battleground, where final decisions concerning board compositions and shareholder influence will transpire.
The complexity of shareholder dynamics, regulatory scrutiny, and market reactions together define the present atmosphere surrounding Goryeo Amyloid. The interplay of legal rulings and financial maneuvers continues to shape the company's outlook as it maneuvers to regain stability following turbulent internal strife. Regardless of the eventual outcome, the results of the impending meeting could significantly alter the corporate governance structure at Goryeo Amyloid.
Investors remain cautiously optimistic as they follow events, conscious of the risks posed by speculative trading patterns and the underlying governance concerns. All eyes are now drawn to the results of the upcoming shareholders' meeting, where pivotal choices will drive the future course of Goryeo Amyloid.