Osstem Implant is a globally renowned maker of dental implants that transformed South Korea from an importing country to exporting country. Accordingly, the company is recognized by more than 80% of Koreans, and its implants are used by dentists and patients in 70 countries around the world.
Recently, an employee in charge of fund management at Osstem Implant was accused of embezzling a staggering 188 billion won from the corporation. Amid this incident, there has been growing attention towards the Korea Exchange’s potential disposal of Osstem Implant.
An official from the Korea Exchange explained on the 4th, “We will determine within 15 days whether or not to review the listing eligibility of Osstem Implant.”
The Korea Exchange has now confirmed that it will suspend stock trading to perform a substantial review of eligibility for listing on charges of embezzlement and breach of trust by the employee, who has only been identified as “Lee” thus far.
When an employee is confirmed to have embezzled or misappropriated more than 5% of his or her equity capital from a listed company, he or she will be subject to a substantial review. Lee embezzled 188 billion KRW, equivalent to 91.81% of Osstem Implant’s equity capital of 204.76 billion KRW.
The impending review will be a comprehensive examination of whether the embezzled amount of 188 billion won is recoverable and whether operations can proceed normally amid falling trust in Osstem Implants. If it is determined that the problem persists, the results of the review may be handed over to the Corporate Review Committee to discuss a delisting.
Lee, who worked as the head of Osstem Implant’s financial management team and siphoned off funds by forging balance certificates, is currently in hiding. Osstem Implant has filed a report against Lee to the police.
During the process of investigation, it was further discovered that Lee was also the “Paju Super Ant”, who had become a hot topic last year when he purchased 143 billion won worth of shares of the semiconductor manufacturing company, Dongjin Semichem.
According to the financial investment industry, Lee, dubbed Paju Super Ant, purchased 3,917,431 shares of Dongjin Semichem (a 7.62% stake) at around 36,000 won per share in October last year as an individual investor. Around November of the same year, he disposed of 3,367,431 shares at a loss, only recovering an estimated 110 billion won.
As of the end of last year, Osstem Implant was a “blue-chip stock” with a market capitalization exceeding 2 trillion won, ranking 23rd in KOSDAQ market capitalization. However, individual investors are now growingly anxious, as the recent events have precipitated an overnight suspension of the company’s transactions and even a risk of being delisted.
Sam Kim
Asia Journal
