Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 343

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1A
Chunk 343
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 the best
interests of OSR conflicts with the best interests of the Company or its stockholders, OSR may not be permitted under applicable Korean
law to act in a manner that is in the best interest of the Company or its stockholders.

Approval by the board of directors of a Korean company is required
for, among other things, all transactions between a director or major stockholder (including a 10% or more stockholder) and the company
for the director’s or the major stockholder’s account. As a result, intercompany transactions between the Company and OSR
(or any other Korean subsidiary we may own, from time to time), could arise in the future in which the directors of the Korean subsidiary
are not able to act in the Company or its stockholders’ best interest as a result of competing interests of the subsidiary. Since
substantially all of our operations are conducted by OSR, any such occurrence with respect to OSR could adversely affect our business,
financial condition, and results of operations.

OSR’ transactions with related parties are subject to close
scrutiny by the Korean tax authorities, which may result in adverse tax consequences.

Under Korean tax law, there is an inherent risk that OSR’ transactions
with its subsidiaries, affiliates or any other person or company that is related to us may be challenged by the Korean tax authorities
if such transactions are viewed as having been made on terms that were not on an arm’s-length basis. If the Korean tax authorities
determine that any of its transactions with related parties were on other than arm’s-length terms, it may not be permitted
to deduct as expenses, or may be required to include as taxable income, any amount which is found to be undue financial support between
related parties in such transaction, which may have adverse tax consequences for us and, in turn, may adversely affect our business, financial
condition, and results of operations.

If we are deemed to have a “place of effective
management” in Korea, we will be treated as a Korean company for the purpose of Korean corporate income tax with regards to
our worldwide income.

Under Korean law, a corporation having a “place of effective
management” in Korea will be subject to Korean corporate income tax. The “place of effective management” is determined
on a case-by-case basis, taking into account factors such as the place where meetings of the board of directors are usually held,
the place where the key executives usually perform their duties