South Korea-based M-Venture Investment Inc. plans to reduce its paid-up capital through a 1-for-1.97 reverse stock split.

The reverse stock split will eliminate 58,337,915 common shares, or 49.24% of the company's outstanding shares, according to an Oct. 10 filing. As a result, the company's paid-up capital will be reduced to 30.07 billion won from 59.24 billion won, based on a face value of 500 won per share.

The reverse stock split will be conducted Dec. 20. Trading in new common shares will begin Jan. 8, 2019.

The plan was approved by the company's board. The company stated the need to cover losses and improve its balance sheet as the reason for the planned capital reduction.

As of Oct. 10, US$1 was equivalent to 1,139.90 South Korean won.