Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 345

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1A
Chunk 345
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 Korean source income attributable to or effectively connected
with such permanent establishment.

Under Korean law, where a foreign corporation has a fixed place for
the operation of all or part of its domestic business, the foreign corporation shall be deemed to have a “permanent establishment”
in Korea. In addition, even if a foreign corporation does not have a physical fixed place of business in Korea, it is deemed to have a
“permanent establishment” in Korea if it operates the business in Korea through persons (the “Dependent Agent(s)”)
who are authorized to conclude business contracts under the name of the foreign corporation.

According to the Supreme Court of Korea, in order for a foreign corporation
to be considered to have a physical “permanent establishment” in Korea, the foreign corporation must have a fixed place of
business, such as a building or facility in Korea that the foreign corporation has the right to dispose of or use, and the employees or
persons under its direction must carry out essential and important business activities, rather than preliminary or auxiliary business
activities. In addition, in order for a foreign corporation to be deemed to have a “permanent establishment” in Korea through
a Dependent Agent, the agent must exercise the right to enter into contracts in the name of the foreign corporation on a regular basis
in Korea, and the authority must be essential and important to the business activities, rather than preliminary or auxiliary.

We do not expect that we are likely to be deemed as having a “permanent
establishment” in Korea, because we do not have a principal office, branch office or any other form of business office in Korea,
nor do we have any physical fixed place of business in Korea that we have the right to dispose of or use. Further, our essential and important
business activities, including the acquisition of companies, are made in the United States through the decisions of our board and
we have not authorized any person or entity to make decisions regarding whether or not to enter into a business acquisition agreement
in Korea.

However, we cannot rule out, on a conservative basis, the possibility
that we may be deemed to have a “permanent establishment” in Korea after the Closing given that (i) Mr. Hwang, our
Chairman of the Board of OSR, is a Korean national and will continue to perform his duties primarily in Korea and (ii) most of the
members of the board of directors of OSR who will be performing substantial functions in connection with our business after the Closing
are Korean. If