Incon surpasses 9% stake in Humasis as legal risks remain a variable amid plan to increase holding to 10.8%

Incon, a video security and ICT company, has increased its stake in KOSDAQ-listed Humasis to the 9% range through additional purchases. According to the Data Analysis, Retrieval and Transfer System (DART), Incon bought 87,642 common shares of Humasis on the open market over five days, from the 1st through the 7th. As a result, Incon’s stake in Humasis rose from 8.66% (2,136,321 shares) to 9.01% (2,223,963 shares).

The purchases were made in five transactions: 9,850 shares on the 1st, 25,000 shares on the 2nd, 12,800 shares on the 3rd, 15,004 shares on the 4th and 24,988 shares on the 7th. The average purchase price per share, excluding fees, ranged from 3,051 won to 3,223 won. Humasis has 24,675,001 shares outstanding.

The purchases are not simply an effort to increase Incon’s stake but part of a plan the company disclosed in advance. Incon previously said it would increase its stake from approximately 7.20% (1,777,110 shares) to 10.80% (2,665,998 shares) through open-market purchases over about one month. Surpassing 9% represents an intermediate step in that plan.

The contrasting effects of pandemic benefits and failed new businesses

During the COVID-19 pandemic, Humasis obtained U.S. Food and Drug Administration approval and the European CE mark, exporting in vitro diagnostic kits to more than 90 countries worldwide, including the United States, Germany and Italy, and securing substantial cash. However, it experienced a series of investment failures while seeking new growth drivers after the transition to the endemic phase.

A prominent example was the acquisition of Billion, the largest shareholder of Kyungnam Pharmaceutical. Total funds invested reached approximately 59 billion won, but its book value had shrunk to approximately 8 billion won as of 2026, resulting in an impairment loss of more than 43 billion won. Humasis also entered a lithium mine development project in Zimbabwe, but lost more than 1.5 billion won of its initial investment of approximately 2.6 billion won because of local export regulation risks and insufficient ore grade, and is proceeding with liquidation.

Minority shareholders’ criminal complaint and corporate governance controversy

Following the successive investment losses, minority shareholders filed a criminal complaint against the former management on allegations of embezzlement and breach of trust. The central issue is whether the former chairman continued to exert indirect influence through a related company even after Incon became the largest shareholder. Legal circles view this issue as likely to be a watershed in the judicial proceedings currently underway.

In the investment banking industry, Incon’s public disclosure of its open-market purchase plan and its stepwise increase in its stake may be interpreted as a signal of its commitment to responsible management. However, industry observers also point out that the outcome of the investigation into the former management and the direction of the legal dispute with minority shareholders remain the biggest risk factors for the company’s credibility.

After winding down its Zimbabwe mining business, Humasis is expected to focus on health care and biotechnology M&A, leveraging the global diagnostic-kit distribution network it built during the pandemic and its remaining financial resources. Whether Incon can achieve management stabilization and resolve its legal risks at the same time after completing the increase of its stake to 10.80% is expected to be a key factor determining Humasis’ corporate value going forward.