[Edaily Marketin Reporter LEE GEON-EOM ] IlyangPharmaceutical(007570)has finalized the liquidation process for Daebang Planning, a family-owned company of the controlling family. The company plans to completely eliminate risks associated with the controlling family—which were previously identified as one of the causes of its delisting crisis—and accelerate efforts to restore market confidence.

According to a comprehensive report by Edaily on the 20th, IlyangPharmaceutical, following a board resolution, completed the transfer of all remaining assets resulting from the liquidation of Daebang Planning during the second quarter. As part of this process, assets held by Daebang Planning—including pre-sale rights for units at the Yeoju Ilseong Condo and the Namwon Kensington Hotel—were transferred to IlyangPharmaceutical.

This measure is part of IlyangPharmaceutical’s ongoing efforts to overcome the crisis of delisting it had faced. Previously, in November of last year, IlyangPharmaceutical received an “unqualified” opinion on its internal accounting, which placed it under review by the Korea Exchange’s Corporate Review Committee and put it at risk of delisting. Following a four-month improvement period, the company secured a decision to maintain its listing (resumption of trading). As part of its follow-up management reform plan, the company has been working to resolve conflicts of interest involving affiliated companies held by related parties and to liquidate Daebang Planning.

Established in February 1989, Daebang Planning has been exclusively responsible for IlyangPharmaceutical’s advertising and the production of promotional materials. As a typical family-owned company in which the owner’s family holds a stake, it had been at the center of controversy over so-called “self-dealing,” generating profits based on IlyangPharmaceutical’s full-scale support in securing business.

Immediately after the decision to maintain its listing, IlyangPharmaceutical promised to sever these internal transaction ties to enhance corporate transparency. With the completion of this liquidation, the company has kept its promise to the market.

It is particularly noteworthy that the asset purchases made during the liquidation process were vetted by the newly established “Ethics Committee.” From Daebang Planning’s perspective as it went through the process of winding down operations, the pre-sale rights to condo units were assets that would not be easy to sell to external parties in the short term.

Consequently, IlyangPharmaceutical directly assumed these assets to expedite the liquidation process. Given that the transaction involved a company owned by the controlling family, strict internal control procedures were implemented to prevent any potential allegations of unfairness. Previously, in December of last year, IlyangPharmaceutical held a shareholders’ meeting to establish three new committees—the Ethics Management Committee, the Executive Compensation Committee, and the Independent Director Nomination Committee—in addition to the Audit Committee.

The market views the completion of IlyangPharmaceutical’s liquidation of Daebang Planning as a positive signal marking a turning point in the company’s crisis. Analysts note that by eliminating the root cause of the controversy over preferential business allocation and further enhancing the transparency of its corporate governance, the company has created an environment where it can focus on improving its fundamentals.

Regarding this, an official from IlyangPharmaceutical explained, “Daebang Planning has gone through the process of winding down its operations, and since it was difficult to sell the two condominiums (to external parties), we resolved the matter by having IlyangPharmaceutical purchase them all,” adding, “The board of directors has approved the resolution, and the asset transfer has been completed.”