KCT (089150) has initiated criminal complaint proceedings amounting to approximately 2.6 billion won in connection with embezzlement allegations against a former employee. The amount disclosed by the company equals 7.23% of its equity capital, of which approximately 1.2 billion won has yet to be recovered.

Complaint Filed Against Former Management Support Team Head... 'Alleged Amount: 2,598,159,678 Won'

KCT announced, through a disclosure on the occurrence of embezzlement and breach of trust, that it had filed a criminal complaint against a former management support team head, identified as Kim, for violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement).

The embezzlement amount stated in the disclosure is 2,598,159,678 won. This is equivalent to 7.23% of the company's equity capital of 35,937,295,251 won based on its financial statements as of the end of 2025. Of the total alleged amount, the unrecovered portion was tallied at 1,206,615,033 won, accounting for approximately 46.4% of the total.

Both the incident date and the confirmation date were recorded as October 13, 2026, based on the date the company filed the complaint with investigative authorities.

'Amount Calculated Based on Complaint... Not a Final Confirmed Figure'

The company explained that the disclosed amount was calculated based on the contents of the criminal complaint and is not a finally confirmed figure. The alleged embezzlement amount and the unrecovered amount may change depending on the results of the investigation by authorities.

Cooperation with Investigation, Focus on Recovering Damages, Strengthening Internal Controls

KCT stated that it will faithfully cooperate with the investigation by authorities while focusing on recovering the damaged amount through legal procedures. It also said it will strengthen its internal control systems to prevent similar incidents from recurring.

This matter is currently at the stage of a criminal complaint against a former employee, and the disclosed alleged amount cannot be deemed a legally confirmed embezzlement figure. The actual scale of damages and the recoverable amount will be determined through future investigations and related legal proceedings.

The company plans to make additional disclosures if any confirmed or changed matters arise related to the case. The outcome of the investigation, whether the unrecovered amount can be recovered, and measures to strengthen internal controls remain matters to be confirmed going forward.

[This article is based on corporate disclosure materials, and the embezzlement allegations have not been confirmed as fact through investigative or judicial proceedings. Investment decisions and the responsibility for them rest with the investor. AI assistance was partially used.]