[Edaily Marketin, Reporter Ji Young] It has been confirmed that Hana Securities disposed of 2 million remaining shares tied to the bridge loan structure related to #Seojin Systems via a block trade. While this block was initially reported to be scheduled for transfer to a fund established by Shinhan Investment Securities, Hana Securities, and SKS Private Equity (PE), it has been confirmed that it was actually sold on the open market.

According to the investment banking (IB) industry on the 11th, Hana Securities began circulating a block trade proposal for 2 million shares of Seojin System on the market the previous day to explore a sale. It is understood that the entire 2 million shares were sold after a foreign firm took the position. These shares were the remaining stake held by Hana Securities through Systema First under the deal structure.

It was initially reported that the 2 million shares held by Hana Securities through Sistema Fund I were scheduled to be transferred to a fund established by Shinhan Investment Securities, Hana Securities, and SKS PE. Previously, a plan had been discussed to sell a portion of the shares tied to the bridge loan structure via a block trade in the market and transfer the remaining shares to the fund for management. However, with the shares held by Sistema Fund I also being disposed of via a block trade, the structure was liquidated early through a market sale, contrary to the original plan.

With this transaction, Hana Securities appears to be effectively stepping down from its role as a financing partner for Seojin System. While Hana Securities had previously participated in the bridge loan structure for Seojin System’s largest shareholder to provide financing support, it is interpreted that the firm has decided to reduce its related exposure following the liquidation of the remaining stake. The 300 billion won perpetual bond issuance currently being pursued by Seojin System will also proceed under the sole lead management of Shinhan Investment Securities.

Meanwhile, Seojin System is facing allegations that it failed to disclose a tax risk amounting to approximately 100 billion won arising from Seojin Vietnam, its key production subsidiary in Vietnam, in its first-quarter report. It has been confirmed that Vietnamese customs authorities notified Seojin Vietnam in February to pay approximately 118.9 billion won in taxes.

The Financial Supervisory Service (FSS) is currently verifying the facts regarding potential violations of disclosure regulations and unfair trading practices. The FSS determined that the large-scale tax administrative measures taken against Seojin System’s major subsidiary were matters that should have been reflected in the first-quarter report.