Extraordinary General Meeting Called Amid 32% Capital Reduction for Deficit Coverage and Delisting Risk

Extraordinary General Meeting on May 12, 2026: 21,000,000 common shares (32.23%) to be cancelled via capital reduction (1.476→1 share consolidation) to cover deficits, reducing capital from KRW 32.5B to KRW 22.0B
Articles of incorporation amendments: reflecting shareholder proposals per court order (Cheongju District Court 2026Kahap513) – director term of 6 months, remuneration not exceeding KRW 1; and revisions for revised Commercial Act and KOSDAQ standard articles (outside directors→independent directors, removal of supermajority clause)
Director elections: Re-election of inside directors Kim Jun-ho, Park Jin-sook, and outside director Hwang Shin-yong (previously approved at AGM but rescheduled due to injunction and resignations). Candidates Choi Soo-il and Kim Dong-hyun were included per court order but submitted resignation letters
Auditor election: Hyun Ki-yong (lawyer) nominated. Auditor candidate Kim Shin-myung was included per court order but did not submit required documents
Approval of director/auditor remuneration limits for 2024 and 2026: KRW 1 billion and KRW 100 million respectively, rescheduled due to legal disputes (nullification lawsuit and injunctions)
Stock trading suspended since June 23, 2025 due to delisting review; improvement period ends May 17, 2026, after which delisting decision will be made
Ongoing legal disputes: lawsuit to nullify AGM resolutions (2025Gahap5058) and injunctions (2026Kahap538, 539) causing re-submission of multiple agenda items

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