Geumyang has officially stated its position on pushing ahead with the physical split-off.

According to Geumyang, after consulting with the law firm representing it in the litigation, the company received an explanation that there is no problem with the representative director and executives proceeding with the physical split-off process.

Earlier, in its October 2 corrective disclosure on the decision regarding the company split, Geumyang added content related to the suspension of duties of the representative director and executives, which the Financial Services Commission notified on September 2. This explanation pertains to the physical split-off plan that the company first resolved on September 9.

The company said that, based on the consultation with its litigation law firm, it was told that "the suspension of duties does not take effect simultaneously with the FSC's notification, and the party responsible for suspending duties is the company." It also said that it has filed for an injunction and is pursuing the main administrative lawsuit against the FSC's decision, and confirmed that there is no problem with the representative director and executives proceeding with the ongoing physical split-off.

◆ Content and Purpose of the Physical Split-Off

The physical split-off Geumyang is pursuing involves separating certain businesses to establish a new company, "KYDC Co., Ltd." Once the split is completed, Geumyang will hold all of the shares issued by the new company.

The new company plans to take charge of businesses including data centers, energy storage systems (ESS), AI services, and spent battery recycling. Geumyang stated that it aims to use land and buildings at the Gijang plant, power supply-related infrastructure, and other assets for the data center business, and to improve its financial structure by selling stakes in the new company and attracting investment capital.

◆ Remaining Procedures and Precautions

This is only the company's announced plan; neither investment attraction nor business performance has been confirmed. Related procedures, including shareholder meeting approval, remain, and the split date as well as the specific details of the transferred assets and liabilities may be changed or finalized later.

The company's explanation that it can proceed with the physical split-off alone does not guarantee the lifting of the trading halt or the maintenance of its listing. Whether the split plan is approved, the actual progress of investment attraction, and the outcomes of related lawsuits each need to be confirmed.

[This article is based on company disclosures and other public materials and is not investment advice. The company's business plans, split schedule, and matters related to the trading halt and listing may change depending on future disclosures and the decisions of relevant authorities and courts. Investment decisions and the responsibility for them rest with the investor, and AI assistance was used in writing this article.]