[Edaily Reporter Kwon Oh Seok ] Shareholders are growing increasingly concerned as Shim Ki-bong, CEO and largest shareholder of KOSDAQ-listed company DENTIS CO.,LTD(261200), has been steadily increasing his stock-backed loans since the start of the year. This is because if the stock price were to fall below a certain threshold, it could trigger forced liquidation, leading to a massive sell-off and a sharp plunge in the stock price. Furthermore, shareholders’ suspicions are mounting as the intended use of the loan proceeds remains unclear.

According to the Financial Supervisory Service’s electronic disclosure system and the financial investment industry on the 11th, DENTIS CO.,LTD has a total of 15,809,700 issued shares, and CEO Shim, the largest shareholder, holds a personal stake of 27.46% (4,341,391 shares).
The issue is that a significant portion of CEO Shim’s stake is tied up in stock-backed loan agreements with financial institutions, and that proportion is steadily increasing. As of January 16 of this year, the number of shares subject to collateral agreements was 2,363,380 shares (14.94% of the total issued shares), but according to the disclosure on March 27, it had increased to 2,421,168 shares (15.31%), and in the disclosure on June 26, it had risen to 2,910,467 shares (18.41%). As of the most recent disclosure on July 10, the figure had increased to 3,160,467 shares (19.99%), meaning that approximately 20% of the total issued shares are currently pledged as collateral.
The counterparties to the collateral agreements are iM Securities, Hana Securities, HanyangSecurities, and Korea Securities Finance Corporation; the total loan amount is approximately 6.3 billion won, with an interest rate of around 5%. This is an amount that cannot be repaid even with DENTIS CO.,LTD’s total operating profit for the first half of the year (5.7 billion won).
Generally, the primary reason a CEO of a publicly listed company takes out a stock-backed loan rather than selling their shares is to quickly secure the large amount of cash needed while maintaining management control and their ownership stake. The funds can be used for various purposes, such as securing capital to participate in a stock offering or paying inheritance and gift taxes without diluting their ownership stake.
However, if the stock price falls and the collateral value drops below the required threshold, the creditor may demand additional collateral or partial repayment of the loan. Failure to comply may result in a forced sale, where the financial institution sells the collateralized shares on the market. In 2023, there was a precedent involving Kim Jae-jin, CEO of the KOSDAQ-listed company EOFlow Co., Ltd.(294090), who sold 2 million shares of his own stock on the open market to repay a stock-backed loan of 10 billion won, resulting in a flood of forced-sale shares.
Market concerns center on such a supply shock and the instability of the business environment. If a large volume of shares is suddenly dumped into the market, it could trigger a sharp decline in the stock price. Choi Jong-soo, an attorney at Sedam Law Firm, warned, “Whether the secured creditor forcibly sells the shares to recover the loan first or acquires a stake to gain influence over management, either scenario could destabilize the corporate environment and negatively impact both the stock price and management control.”
Another legal industry official noted, “Since shares are typically offered at a discount of about 10–15% below the current market price during forced sales, this could serve as a signal for a stock price decline.” Currently, DENTIS CO.,LTD has 11,915 minority shareholders, who collectively hold 64.1% of the company’s shares.
Some observers are also raising questions about how CEO Shim is utilizing the loan exceeding 6 billion won. It appears the funds were not used to purchase shares. Starting with 4,307,825 shares early this year, CEO Shim has steadily purchased additional shares on the open market—adding approximately 40,000 shares—and disclosed the source of all funds as “employment income.”
In response, SAMKEE CORP. explained, “We prioritize enhancing corporate value over the medium to long term and achieving sustainable growth, which includes growing alongside our shareholders.” It added, “We are continuously striving to demonstrate our corporate value through performance by expanding domestic and international markets, strengthening product competitiveness, and improving profitability.”