[Edaily Reporter Park Jung-Soo ] YMT CO., LTD.(251370)has stated that the lawsuit filed in China regarding the repurchase of shares worth approximately 15.3 billion won did not arise from the company’s refusal to pay a confirmed debt. The company explained that the lawsuit stemmed from procedural issues that arose during the payment process for the repurchase proceeds, including China’s foreign exchange regulations, tax matters, and overseas remittances.
In a notice to shareholders issued on the 1st, YMT CO., LTD. stated that this lawsuit stemmed from practical and legal disputes surrounding the method of payment to foreign shareholders, proxy receipt, foreign exchange remittances, withholding taxes, and tax procedures that arose during the process of actually paying the repurchase proceeds after the contract was signed.
The plaintiffs filed a lawsuit seeking a total of 15.34699 billion won, comprising the contractual repurchase payment of 43.5 million yuan plus 30 million yuan in late payment interest and liquidated damages, as well as other costs.
YMT CO., LTD. officials explained, “We have been working with local Chinese financial institutions and relevant authorities to identify lawful and feasible payment methods and propose solutions; we have never evaded our obligation to pay or refused to fulfill it.”
The official added, “The plaintiff’s claims regarding late payment interest and liquidated damages do not sufficiently reflect the actual circumstances related to foreign exchange, taxation, and payment procedures that arose during the course of contract performance, nor do they adequately account for the progress of negotiations between the parties.”
YMT CO., LTD. plans to respond to the lawsuit in collaboration with its legal counsel, based on the contract, correspondence between the parties, and verification documents from financial institutions and relevant authorities. Separately from the lawsuit, the parties are also engaged in negotiations to resolve the dispute. The company explained that they are currently discussing specific settlement terms, including the actual equity transaction structure, payment methods, and tax treatment.
YMT CO., LTD. also emphasized that the disclosed litigation amount represents the plaintiff’s claim and does not constitute a confirmed liability or loss for the company.
YMT CO., LTD. official stated, “We are striving to resolve the dispute swiftly and reasonably by concurrently responding to the lawsuit and engaging in negotiations with the other party,” adding, “This lawsuit has not caused any significant disruption to our normal business operations, and should any material matters requiring disclosure arise in the future, we will provide guidance in accordance with relevant regulations.”