[Edaily Reporter KIM SAE-MI ] BukwangPharmaceutical(003000) ’s subsidiary, UNION KOREA PHARM CO.,Ltd., has largely completed debt repayment under its reorganization plan and has filed a petition with the court to terminate the reorganization proceedings. This comes approximately three months after BukwangPharmaceutical invested 30 billion won in May to become the largest shareholder.
BukwangPharmaceutical announced on the 14th that UNION KOREA PHARM CO.,Ltd had filed a petition with the Seoul Rehabilitation Court to terminate its rehabilitation proceedings.
UNION KOREA PHARM CO.,Ltd filed for the commencement of rehabilitation proceedings on September 9 of last year and received a decision to commence proceedings on the 16th of the same month. Subsequently, on May 12, it received approval of its rehabilitation plan from the Seoul Rehabilitation Court.
On the 27th of that same month, BukwangPharmaceutical paid 30 billion won for the acquisition of new shares in UNION KOREA PHARM CO.,Ltd, thereby securing its position as the largest shareholder. The investment amount represents 8.8% of BukwangPharmaceutical’s consolidated equity of 340.9 billion won as of the end of 2025.
Based on the capital injection from BukwangPharmaceutical, UNION KOREA PHARM CO.,Ltd proceeded with the rights adjustments and debt repayment in accordance with the approved reorganization plan. The total amount of claims subject to repayment this year was 29.2 billion won, of which approximately 29.1 billion won was repaid, excluding an outstanding balance of 76 million won. This represents approximately 99.7% of the total amount subject to repayment.
According to BukwangPharmaceutical, most of the secured rehabilitation claims were repaid in cash. Unsecured rehabilitation claims were restructured such that 67.65% were converted into equity and 32.35% were repaid in cash. Most interest accrued after the commencement of the rehabilitation proceedings was waived, and rights associated with existing convertible bonds (CBs) and bonds with warrants (BWs) were extinguished as of the date the rehabilitation plan was approved.
Based on this status of implementation, UNION KOREA PHARM CO.,Ltd has filed a motion to terminate the reorganization proceedings. All that remains now is the Seoul Reorganization Court’s decision to terminate the proceedings. BukwangPharmaceutical plans to disclose relevant details as soon as the court’s decision is issued.
BukwangPharmaceutical emphasized that UNION KOREA PHARM CO.,Ltd.’s financial structure has also improved through the reorganization process. According to the company, UNION KOREA PHARM CO.,Ltd.—which had been in a state of negative equity—saw its debt-to-equity ratio drop to the 40% range following the conclusion of the reorganization proceedings; excluding normal operating liabilities such as accounts payable and provisions for returns incurred during the normalization of operations, the effective debt-to-equity ratio stands at approximately 15%.
A BukwangPharmaceutical official stated, “Through the injection of 30 billion won to acquire new shares, we have resolved UNION KOREA PHARM CO.,Ltd’s financial uncertainties and fulfilled the debt repayments outlined in the rehabilitation plan,” adding, “Following the court’s decision to conclude the proceedings, we will move forward with full-scale business normalization and work to create business synergies between the two companies.”
