Align Files Injunction to Inspect Dentium’s Accounting Records, Escalating Long-Term Dispute

Align Partners Asset Management has filed for an injunction against Dentium seeking access to and copies of its accounting books and records. The application was filed July 1, and Dentium disclosed that it received service from the Suwon District Court on July 3 (case No. 2026카합10487). The dispute between the activist fund and management of a strong mid-sized company that ranks among the leaders in the global dental implant market has entered a new phase of legal confrontation.

Align asked the court to allow it to inspect and copy Dentium’s accounting books and documents during the company’s business hours, from 9 a.m. to 6 p.m., for 30 days excluding Saturdays and public holidays, beginning 3 business days after Dentium receives the original copy of the decision. The requested materials include files stored on electronic storage devices, external servers and the cloud. The application also seeks permission to bring assistants, including attorneys and certified public accountants. It asks that Dentium pay 5 million won for each day of noncompliance and bear the litigation costs.

From shareholder vote battle to legal confrontation

The injunction application is an extension of the conflict between the two sides that has continued since early 2026. At Dentium’s annual general meeting in March this year, Align succeeded in passing a proposal to reduce the limit on directors’ compensation, but narrowly lost to management in the election of an audit committee member (outside director), a key agenda item. Align subsequently sought an injunction suspending the performance of duties by the outside director, alleging that management had unlawfully recognized proxy votes, but the court dismissed the application in August.

Behind Align’s decision to seek access to Dentium’s accounting records are specific suspicions about the company’s flow of funds. Align has argued that Dentium operates transactions with subsidiaries and related parties opaquely and that its corporate value has been seriously undervalued as the company invests capital in a hydrogen fuel cell business unrelated to its core operations. Chang-hwan Lee, CEO of Align Partners, has said, “In a structure where the controlling shareholder exercises substantial influence over the board, conflicts of interest are inevitable,” adding, “The fundamental cause of the undervaluation is the transfer of company profits to the controlling shareholder’s side through related-party transactions or inefficient capital allocation.”

Valuation gap and changes in ownership

Dentium’s undervaluation is also evident in the figures. As of February 2026, Dentium’s price-to-book ratio (PBR) was about 0.77 times and its EV/EBITDA was about 6.6 times, while the average PBR of global peers such as Straumann was 3.13 times and their EV/EBITDA was 14.0 times. Under pressure from Align, Dentium fully canceled 118.5 billion won worth of treasury shares in early 2026, increasing Align’s stake from 8.16% to 10.47% without additional purchases.

It is also notable that major institutional investors, including the National Pension Service, voted in favor of Align’s shareholder proposals at the March annual meeting. The global dental implant market is estimated at approximately $5.75 billion (about 7.6 trillion won) as of 2026, and Dentium is a leading company in the market, with high market shares across Asia, Europe and Russia. Industry experts say the central issue in the dispute is a structural problem in which governance risk acts as a discount factor despite the company’s solid business fundamentals.

Evidence-gathering campaign ahead of the 2027 annual meeting

If the court grants the injunction, Align is expected to bring attorneys and accountants to verify the details of Dentium’s investments in the hydrogen business and the appropriateness of its related-party transactions. If signs of embezzlement of company funds or improper support are identified, the matter could lead to a shareholder derivative suit or a criminal complaint. Analysts say the latest attempt to inspect the records appears aimed largely at building a justification and gathering evidence to increase Align’s influence over the board at next year’s annual meeting. Dentium said it “plans to respond in accordance with legal procedures” and is expected to defend itself by seeking to limit the scope of the inspection on grounds including the protection of trade secrets.