Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 106

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1
Chunk 106
---
 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, the place where the day-to-day management of senior managers
is carried out, and the place where accounting documents are routinely recorded and kept, etc.

Because many of our directors and executive officers are located in
Korea, it is possible that the Company will have a “place of effective management” in Korea. Additionally, the Company and
certain of its subsidiaries will have physical business offices in Korea, where several of our key executive officers will conduct business.
Further, our board of directors includes several Korean citizens who will make significant decisions regarding our business, including
decisions regarding capital raising and acquisitions.

Additional reasons the Korean tax authorities may conclude that we
have a “place of effective management” in Korea include that (i) Mr. Kuk Hyoun Hwang, OSR’ Chairman of the
Board of Directors, is a Korean national, and Mr. Hwang spends most of the year working in Korea and will continue to do so after
the Closing;