Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 342

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1A
Chunk 342
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 of such securities or other transactions involving foreign exchange. Although investors
will hold shares of the Company Common Stock, its majority owned subsidiary, OSR, may experience adverse risks and in turn could adversely
impact the Company’s business, prospects, financial condition, and results of operations and could lead to a decline in the price
per share of its common stock.

In addition, under Korean law, there are circumstances in which certain
executive officers of a company may be investigated or held criminally liable either directly or vicariously for the actions of the company
and its executives and employees. For example, complaints alleging infringement of intellectual property rights, breaches of certain
Korean laws (e.g., labor standards laws and fair trade laws), and product-related claims may be investigated and prosecuted
as criminal offenses with both the company and the company’s executive officers being named as defendants in such proceedings.

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As a result of these current and changing risks, OSR’ executive
officers may be named in the future in criminal investigations or proceedings stemming from its operations. In Korea, company executive
officers being named in such investigations or proceedings are a common occurrence, even though in practice many such cases result in
no liability to the individual. If OSR’ executive officers were to be named in such criminal proceedings or held either directly
or vicariously criminally liable for the actions of OSR and its executives and employees, the Company’s business, financial condition,
and results of operations may be harmed.

OSR is subject to certain requirements and restrictions under
Korean law that may, in certain circumstances, require it to act in a manner that may not be in the Company’s or its stockholders’ best
interest.

Under applicable Korean law, directors of a Korean company, such as
OSR, owe a fiduciary duty to the company itself rather than to its stockholders. This fiduciary duty obligates directors of a Korean company
to perform their duties faithfully for the good of the company as a whole. In addition, while the facts and circumstances of each case
will differ, the duty of care required of a director under Korean law may not be the same as the fiduciary duty of a director of a U.S. corporation.
Although the “business judgment rule” concept exists in Korea, there is insufficient case law or precedent to provide guidance
to the management and stockholders as to how it should be applied or interpreted. As a result, if circumstances arise in which