An Employee Embezzles KRW188bn
Osstem Implant, South Korea's top dental implant manufacturer, announced on Jan. 3 that it has sued its employee, identified by his surname Lee, for embezzlement. The estimated amount of the embezzlement is 188 billion won, which amounts to 91.81 percent of the company’s equity capital of 284.7 billion won.
Osstem Implant said it discovered the misconduct on Dec. 31, 2021 and filed a complaint against the employee with Gangseo Police Station in Seoul. The company said the embezzlement appeared to have been committed by the fund management staff member alone.
On the same day, the KOSDAQ Market Headquarters of the Korea Exchange suspended trading in Osstem Implant shares, saying that the alleged embezzlement and breach of trust constitutes a reason for a substantial review of eligibility for listing.
Osstem Implant is Korea’s leading medical device company that developed dental implants for the first time in Korea and exports the products in the global implant market. It ranks first in the Asia and Pacific market and fourth in the world market. It has a sales network in more than 70 countries, including China, Japan, and the United States, and controls 35 affiliates.
Osstem Implant’s main business areas include implants, dental equipment, and dental information and communication (IT). In 2018, One Mill 4x, a self-developed digital dentistry milling machine, was launched in the Korean market. The company also released T1, a dental computed tomography (CT) product.
The embezzlement case is expected to negatively affect foreign investors, who hold a 45 percent stake in Osstem Implant. In 2021, foreigners bought Osstem Implant stocks worth 161.2 billion won (1,239,952 shares). Their average purchase price per share is estimated at 129,999 won. In 2021, pension funds also net purchased 28.2 billion won worth of Osstem Implant stocks. On the other hand, individual investors sold off 156.5 billion won worth of its shares.