Dong Sung Bio Pharm announced on the 13th that it was declared bankrupt for failing to settle a 100 million won amount in electronic bills.
The corporation stated that it presented approximately 139.17 million won the previous day to settle the matured bills issued by the company at the Seoul branch of the Industrial Bank of Korea, but the payment was not made, leading to its bankruptcy.
According to the company, due to the property preservation order and comprehensive injunction ruling of the Seoul Rehabilitation Court on the 8th, it became impossible to extend and settle the debt. Subsequently, the payment was not made due to payment restrictions (legal restrictions) stipulated in the bills exchange business operation regulations, leading to bankruptcy.
Dong Sung Bio Pharm, established in 1957, is a mid-sized pharmaceutical company engaged in the production of pharmaceuticals and cosmetics, with major products including the diarrhea treatment 'Jeongro-hwan,' the dye 'Seven Eight,' and the hair loss treatment 'Minoxidil.'
The company transitioned to a third-generation owner management system when then CEO Lee Yang-ku resigned in October last year and his nephew Na Won-gyun was appointed as the new CEO. Since then, a management rights dispute has erupted between the two sides.