[E-Daily Reporter KIM SAE-MI ] Dong-A Socio Holdings and Dong-A Pharmaceutical, which were separated during the transition to a holding company structure in 2013, have reunited after 13 years. Dong-A Socio Holdings merged with its wholly-owned subsidiary, Dong-A Pharmaceutical, and changed its name to Dong-A Pharmaceutical, marking a fresh start as a publicly traded pharmaceutical company with assets totaling 1.4 trillion won.

Dong-A Socio Holdings(000640)announced on the 2nd that it had completed the merger with Dong-A Pharmaceutical on the 1st. Dong-A Socio Holdings is the surviving entity, while the former Dong-A Pharmaceutical has been dissolved. The surviving entity has changed its name to Dong-A Pharmaceutical.

In March 2013, the Dong-A Socio Group transitioned to a holding company structure by splitting the former Dong-A Pharmaceutical into Dong-A Socio Holdings (the holding company), Dong-A Socio Pharmaceutical Co., Ltd. ( Donga ST(170900)), which handles prescription drugs, and Dong-A Pharmaceutical, which handles over-the-counter (OTC) drugs and other products. With this merger, the holding company and Dong-A Pharmaceutical—which had been separated at that time—have been reunited as a single legal entity for the first time in 13 years.

Since Dong-A Socio Holdings already held 100% of the outstanding shares of Dong-A Pharmaceutical, the merger proceeded as a merger without a capital increase at a merger ratio of 1:0. No new shares or separate merger consideration were issued during the merger process, and there was no change in the ownership stakes of existing shareholders, including the largest shareholder.

As the merger was conducted as a small-scale merger, no right of squeeze-out was granted. However, between August 10 and 24, 103 shareholders submitted objections to the merger, representing a total of 6,166 shares. This amounts to 0.09% of the total issued shares.

The merger has also significantly expanded the company’s scale. As of the end of June, total assets after the merger stood at 1.4115 trillion won, an increase of approximately 43% compared to Dong-A Socio Holdings’ pre-merger assets of 985 billion won. Total liabilities after the merger are 463.5 billion won, and total equity is 948 billion won. Retained earnings increased from 567 billion won at Dong-A Socio Holdings prior to the merger to 802.7 billion won after the merger.

The former Dong-A Pharmaceutical was removed from Dong-A Socio Holdings’ list of subsidiaries upon the merger. Dong-A Socio Holdings held 6 million shares of Dong-A Pharmaceutical, representing a 100% stake, with a book value of 39.8 billion won as of the end of 2025 based on separate financial statements. As the original Dong-A Pharmaceutical entity was dissolved through the absorption merger, the number of subsidiaries decreased from 10 to 9.

The company expects this merger to simplify its corporate governance structure and enhance management efficiency. In particular, by transitioning from a pure holding company to an operating holding company, it anticipates being able to generate cash from its own operations, which is expected to improve operating cash flow.

A Dong-A Pharmaceutical official stated, “This merger is a strategic decision aimed at enhancing the speed of decision-making and management efficiency, while also eliminating the structural discount associated with being a pure holding company to boost medium- to long-term corporate value and shareholder value.” The official added, “We will pursue sustainable growth based on our transformed business structure and the brand value and trust that Dong-A Pharmaceutical has built up over many years.”