[Edaily Reporter NA EUN-KYUNG ] Management control of MGEN SOLUTIONS(032790)is being transferred to Jigen Tech, a waste plastic recycling company. MGEN SOLUTIONS will replace its largest shareholder and board of directors through a combination of the sale of existing shares and a third-party private placement, while also raising a total of 7 billion won in operating capital.

On the 10th, MGEN SOLUTIONS announced that its largest shareholder, Mr. Shim Sang-won, along with one other individual, had agreed to sell 996,472 shares to the JigenTech Investment Consortium for 3.98588 billion won. The sale price is 4,000 won per share.

The JigenTech Investment Fund will also acquire 3,843,197 new shares issued by MGEN SOLUTIONS at 1,301 won per share, for a total of 5 billion won. The combined investment amount for the existing and new shares is approximately 8.986 billion won. Upon completion of all transactions, the fund will hold a total of 4,839,669 shares, becoming the largest shareholder with a 16.39% stake and securing management control.

The JigenTech Investment Fund was established in September 2026 for this acquisition. The fund’s assets total 509 million won, and its representative partner, Mr. Kwon Young-seok, holds a 99.21% stake. According to MGEN SOLUTIONS, the JigenTech Investment Fund was established by JigenTech Co., Ltd. to acquire management control.

GigenTech is a manufacturer of basic organic chemicals established in Ulju County, Ulsan, in 2023. Its core business involves technology that converts waste plastics into energy and petrochemical feedstocks through low-temperature pyrolysis. The company has also conducted basic experiments with researchers from Hanbat National University to produce pyrolysis oil and black carbon using waste plastic powder.

MGEN SOLUTIONS will also conduct a small-scale public offering of 2 billion won, targeting Kim Jeon-heung, Oh Jeong-jun, Lee Yun-ju, and Lee Hong-ju, separate from the capital increase for the JigenTech Investment Consortium. The company will issue 1,610,304 new shares at 1,242 won per share, with the payment date set for the 17th. The total of 7 billion won raised through the two capital increases will be used entirely as working capital. Once the small-scale public offering is completed, the JigenTech Investment Consortium’s effective ownership stake is calculated to be approximately 15.55%, lower than the 16.39% disclosed in public filings.

MGEN SOLUTIONS was established in September 1973 as “Daeshin Jeonyeon,” a manufacturer of electronic components such as high-frequency coils and transformers, and was listed on the KOSDAQ market in 1997. Since then, the company has gone through name changes—including System and Application Technologies Inc., S-Infotech, GI Blue, MGen Plus, and BNGT—before adopting its current name in 2023. The company has also expanded its business scope to include printer and photo processor components, electrical and electronic components, and information and communications technology (ICT) and artificial intelligence (AI) fire detection solutions.

This is not the first change in management control. In 2015, the largest shareholder changed from Mr. Shin Yong-hyun to KM CORPORATION ( KX Innovation(122450)), and CELLUMED CO., LTD.(049180)served as the largest shareholder from 2015 to 2020. Subsequently, in 2020, control shifted to CP Holdings through a third-party private placement and a stock transfer, and in 2021, it shifted again to Transgen Bio following another private placement.

The company has repeatedly faced issues with fundraising and management stability. In 2016, trading was suspended due to allegations of embezzlement and breach of trust against the former CEO, and in 2019, it was again subject to a substantive review of its listing eligibility due to violations of accounting standards. In 2023, the company pursued a 14.6 billion won rights offering to fund the expansion of its Vietnam plant, among other projects, and actually raised 11.6 billion won.

Weak financial performance also persisted. In 2025, MGEN SOLUTIONS reported consolidated revenue of 28.6 billion won and an operating loss of 10.3 billion won. Revenue decreased by 32.9% year-over-year, and the operating loss more than doubled from 3.9 billion won. In the first half of 2026, revenue fell by 49.3% compared to the same period the previous year, and the operating loss widened. 2025 Financial Results

MGEN SOLUTIONS plans to hold an extraordinary general meeting of shareholders on October 13 to appoint directors designated by GigenTech and amend the articles of incorporation. Once the transaction is finalized, all existing directors and auditors will resign, and a person appointed by the new board of directors will assume the role of CEO. Prior to this, the company appointed Jeon Heung-jae as President of the Future Strategy Office on the 1st, and disclosed that President Jeon holds 232,822 shares of the company’s stock.