A significant shift has occurred within KOSDAQ-listed Medicox, as Sony has relinquished its position as a major shareholder. This progress stems from a recent downturn in Medicox’s stock price, triggering a series of events that could reshape the company’s leadership and strategic direction.

The Numbers Tell the Story

• Sony’s stake in Medicox plummeted from 16.79% too a mere 1.71%, according to a Financial Supervisory Service electronic disclosure on the 28th.
• This drastic reduction is attributed to opposition sales resulting from the execution of collateral rights.
• Previously, Sony had entered into a collateral contract involving 1,249,8686 shares, representing 15.08% of medicox’s shares.

Collateral Agreements and Their Consequences

Sony’s financial arrangements with multiple savings banks played a crucial role in this shakeup. In 2023 and 2024, Sony signed stock collateral agreements with Sangsang Savings Bank and Sangsang Plus Savings Bank, pledging 961,000 shares (1.16%) and 2,537,686 shares (3.06%), respectively.

Further complicating matters, in April, Sony entered into a contract with Hurim Investment Loan, involving “a few million shares (10.86%).” The agreement stipulated that if Medicox’s stock price dipped below 270 won per share, Hurim Investment Loan had the right to sell 9 million shares provided as collateral, even if it meant covering interest and loan repayment.

The critical threshold was breached in early May when Medicox’s stock price plunged to 100 won, triggering the creditor’s opposition sales.

Loss of Co-Management Rights

The consequence of these events is Sony’s anticipated loss of co-management rights within Medicox. Previously, Medicox was jointly managed by the Cage Investment Association, the current largest shareholder, and Sony.

The Cage Investment Union secured a 16.89% stake on March 25 through participation in a third-party paid-in capital increase (7 billion won). This marginally surpassed Sony’s previous 16.79% stake. The near-equal stakes resulted in a balanced board of directors, with each party holding four seats and operating under a representative system.However, the recent opposition sale has disrupted this equilibrium.

A Shift in Leadership?

With Sony’s diminished stake, Medicox is poised to transition to a sole management system under the Cage Investment Association. This change is expected to manifest in a reshuffling of the board of directors, potentially as early as June.

Medicox is scheduled to convene a general meeting of shareholders on June 19 to address the appointment of directors. While the specific agenda remains undisclosed, speculation suggests that the meeting will focus on appointing a representative of A, “who is known as a real owner of the cage investment association.”

Controversy Surrounding Representative A

Representative A’s background is not without controversy. He “has been known for its controversial Dish Inside, and has also been able to abolish or liquidate numerous companies.” He reportedly spearheaded the acquisition of Medicox’s overseas shopping mall and master’s school under the joint management system with Sony. However, with Sony’s reduced influence, “all four Sony’s directors could not be replaced.”

company Response

Despite the unfolding events,an official of Medicox offered a measured response,stating,We haven’t heard of the replacement plan for the opposite sale.