[Edaily Reporter KIM SAE-MI ] The financial investor (FI) risk associated with Cha Healthcare has spread beyond Chabiotech Co.,Ltd. to KH Green, a key pillar of Vice Chairman Cha Won-tae’s control. KH Green’s entire stake in Chabiotech Co.,Ltd. has been pledged as collateral, and most of this collateral secures Chabiotech Co.,Ltd.’s payment obligations should Cha Healthcare’s investors demand a return of their investment.

A recent investigation by Edaily revealed that the entire stake in Chabiotech Co.,Ltd. held by KH Green—a key link in the Cha Biotech Group’s governance structure that expands the influence of Cha Won-tae, Vice Chairman and CEO of Chabiotech Co.,Ltd.—has been pledged as collateral. Of this, 74% was provided not to secure KH Green’s own debts, but to secure Chabiotech Co.,Ltd.’s ( Chabiotech Co.,Ltd.(085660)) payment obligations to new financial investors (FIs) in Cha Healthcare.

Cha Biotech Group explained that this collateral holds “symbolic significance for Cha Healthcare’s IPO.” However, the actual secured debt under the contract also includes Chabiotech Co.,Ltd.’s payment obligations arising from the exercise of Piwoom’s put option. This effectively links the investment risk associated with Cha Healthcare directly to KH Green’s stake in Chabiotech Co.,Ltd.—a key asset in Vice Chairman Cha’s succession plan.

KH Green, “Core of Cha Won-tae’s Control,” Pledges Entire Stake in Chabiotech Co.,Ltd.

KH Green, which holds 8,701,938 shares (9.35%) of Chabiotech Co.,Ltd., is the cornerstone of Vice Chairman Cha Won-tae’s control. KH Green’s stake in Chabiotech Co.,Ltd. significantly exceeds Vice Chairman Cha’s personal stake of 3.29%, making it the largest single shareholder of Chabiotech Co.,Ltd.

Vice Chairman Cha is the largest shareholder of KH Green, holding a 40.10% stake. This structure means that the stake held through KH Green is far larger than the stake in Chabiotech Co.,Ltd. held in Vice Chairman Cha’s personal name. This is why KH Green is cited as a crucial link in the future governance and succession process of the Cha Biotech Group.

However, all of the Chabiotech Co.,Ltd. shares held by KH Green are currently pledged as collateral. Of these, 2,241,239 shares have been pledged as collateral for a 10 billion won stock-backed loan that KH Green received from Hana Bank.

A pledge was established on the remaining 6,460,699 shares on June 30 to “Pium AI Future Healthcare New Technology Financial Investment Fund,” a new financial investor (FI) in CHA AI Healthkare. This represents 74.2% of KH Green’s total holdings. The combined number of shares pledged under these two agreements matches the entire 8,701,938 shares of Chabiotech Co.,Ltd. held by KH Green.

Notably, the 6,460,000 shares provided to Pium are not intended to secure KH Green’s own borrowings. According to the disclosure, the debtor is Chabiotech Co.,Ltd. The secured debt is defined as “all monetary payment obligations” that Chabiotech Co.,Ltd. owes to Pium, including payment obligations arising from the exercise of Pium’s right to demand repurchase—that is, its put option.

Previously, Piwoom entered as a new financial investor (FI) by acquiring approximately 200 billion won worth of shares in Cha Healthcare from Chabiotech Co.,Ltd. At the same time, Chabiotech Co.,Ltd. invested 60 billion won in Piwoom. During the process of transitioning the existing FI structure to a new investor, Chabiotech Co.,Ltd. incurred new payment obligations related to the put option, and KH Green’s core assets were pledged as collateral to secure these obligations.

When asked why KH Green pledged its shares as collateral for Chabiotech Co.,Ltd.’s debt, a representative of the Cha Bio Group responded, “While we cannot disclose the details of the underlying agreement between KH Green and Pium due to a confidentiality agreement, this move holds symbolic significance for Cha Healthcare’s IPO.”

The company did not provide specific details regarding whether KH Green receives any economic consideration—such as fees or guarantee premiums—in exchange for providing the collateral, the maximum amount of the secured debt, the yield on the Pium put option, or the exercise date. Nor did it disclose the conditions under which Pium could dispose of KH Green’s stake in Chabiotech Co.,Ltd. should Chabiotech Co.,Ltd. fail to fulfill its payment obligations.

Regardless of the company’s description of “symbolic significance,” this agreement is a legal contract that actually establishes a security interest. Since the payment obligations under the put option are included in the secured debt disclosed in the filing, it is important to monitor how KH Green’s stake will be affected from a future corporate governance perspective should Cha Healthcare’s IPO or Piwoom’s investment recovery not proceed as planned.

Cha Healthcare’s FI Risk Also Impacts Cha Won-tae’s Core Controlling Stake

KH Green recently further strengthened its control over Chabiotech Co.,Ltd. Last year, it participated in Chabiotech Co.,Ltd.’s rights offering, acquiring an additional 3,064,714 shares at 7,540 won per share. The total investment amounted to approximately 23.1 billion won. Consequently, its shareholding increased from 5,637,224 shares to 8,701,938 shares.

Regarding the source of funds for the rights offering, Cha Biotech Group stated, “We participated using our deposit balances,” adding, “The 10 billion won in funds from the stock-backed loan from Hana Bank was not used to participate in the rights offering.”

KH Green’s financial structure also changed significantly last year. At the end of 2024, it had assets of 159.5 billion won and liabilities of 165.6 billion won, resulting in total equity of -6.1 billion won; however, by the end of 2025, its assets had risen to 279.7 billion won, liabilities to 223.5 billion won, and total equity to 56.2 billion won. This represents an increase in total equity of approximately 62.3 billion won over the course of one year.

The company explained, “This is due to the increase in the market value of Chabiotech Co.,Ltd. shares in 2025 compared to 2024.” In essence, KH Green’s capital expansion was largely driven by the rise in the value of its Chabiotech Co.,Ltd. shares rather than by improved operating performance or new cash inflows.

The group explained that, as of now, there are no plans to further expand its stake through KH Green or to transfer shares held by the owner’s family. An official from Cha Biotech Group stated, “At this time, there are no plans to expand our stake or to transfer or consolidate shares held by the owner’s family.”

However, since the payment obligations under the Cha Healthcare investment agreement are linked to KH Green’s equity collateral, Chabiotech Co.,Ltd.’s financial issues—as well as the future listing of Cha Healthcare and Piwoom’s capital recovery process—are expected to impact not only Chabiotech Co.,Ltd.’s finances but also the group’s corporate governance. This is because the issue of recovering the investment in Cha Healthcare is directly intertwined with the controlling stake held by the owner’s family.