Affinity went to the chairman’s house to seize a single paper stock

It has been confirmed that the legal representatives of the affinity consortium, which is having a’stock put option dispute’ with Kyobo Life Insurance Chairman Shin Chang-jae and Sujowon University, have come to their homes to seize the shares of Chairman Shin. Chairman Shin’s side insisted that there is no single stock in the house as the entire stake is kept in the form of electronic stocks at the Korea Securities Depository, but the affinity agents went through the verification process directly.

According to industry sources on the 7th, Affinity visited his home in Seongbuk-dong, Seoul and the office of the head office in Gwanghwamun, Seoul, after receiving permission from the court to seize real stocks from Chairman Shin. Affinity could only seize physical securities made of paper. An industry insider said, “Since all of the stocks of Chairman Shin are in the form of electronic stocks, it was impossible to seize physical securities approved by the court. I went to the company,” he said.

One employee was injured as a result of friction in the process by the security guards of Chairman Shin from preventing affinity officials from entering their homes. It is reported that the employee is scheduled to sue the Affinity legal representative who exercised physical force. Some testimony came out that the door to the house was also broken.

An official from Kyobo Life analyzed that “The invasion of the house to search for paper securities even though there is no real profit that can be obtained through the foreclosure is the intention to damage Chairman Shin’s reputation and cause psychological pain.”

This is the fifth time the court has allowed Affinity to seize the property of Chairman Shin. The Affinity Consortium consists of Affinity Equity Partners, IMM Private Equity (PE), Bearing Private Equity (PE), and Singapore Investment Agency.

Affinity bought 4.92 million shares of Kyobo Life Insurance (24% stake) owned by Daewoo International and put in a put option clause to resell Kyobo Life shares to Chairman Shin. When Kyobo Life passed the IPO deadline, Affinity exercised a put option at 400,000,9912 won per share in 2018. Since the moment he exercised the put option, he had the right to receive money from Chairman Shin, so the court allowed him to seize his dividends, home, salaries, and physical stocks. Even if it is seized, there is no right to disposition. It just prevents President Shin from handing over ownership to others.

Kyobo Life and Affinity are currently fighting in the International Chamber of Commerce (ICC) arbitration court, and sooner or later the arbitrator (the role of judge in civil lawsuits) will be held. In January, the prosecution handed over financial investors such as Affinity Equity Partners and IMM PE, as well as Deloitte Anjin, an accounting firm, to trial on charges of violating the CPA. In the CPA, a CPA must not intentionally conceal the truth when performing his/her duties, and the commissioner cannot consult to obtain financial gains in an unjust way.

After the prosecution’s prosecution, the Affinity side released a statement stating that “the part mentioned in the prosecution’s indictment as a crime, namely, conspiracy, false reports, unjust solicitations, and unfair gains are not at all true.

Reporter Park Jong-seo [email protected]

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