Chul-Wan Park, Managing Director of Kumho Petrochemical “The shareholders’ proposal is the first step to increase shareholder value…Acquisition of Kumho Resort is inappropriate”

Input 2021.02.23 19:35 | Revision 2021.02.23 21:05

Kumho Petrochemical’s managing director Park Chul-wan, who made a shareholder proposal to Kumho Petrochemical last month, such as increasing dividends and recommending outside directors, said on the 23rd, “To check against inappropriate investment decisions such as the acquisition of Kumho Resort and to enhance the corporate value and shareholder value of Kumho Petrochemical. “I hope this shareholder proposal can be the first step in enhancing the corporate value and shareholder value, as well as the sustainable growth of Kumho Petrochemical.” Managing Director Park also announced the position, “We will achieve 20 trillion won in market capitalization by 2025 through business operation through overall improvement of the corporate structure.”

Managing Director Park issued a statement on this day and stated the purpose and purpose of the shareholders’ proposal delivered to the company last month. This is the first time that Managing Director Park officially revealed the reason for securing management rights. Managing Director Park is currently the largest shareholder with a 10% stake in Kumho Petrochemical.

He said, “As an executive and individual largest shareholder, wishing for the further growth and development of Kumho Petrochemical, we have come to request a proposal from shareholders in accordance with a legitimate procedure for the sustainable future of Kumho Petrochemical.”

Managing Director Park suggested that the goal is to achieve a market capitalization of 20 trillion won by 2025 through strategic management and business operation through overall improvement of the corporate structure. Strategies to achieve this include ▲ discovering future growth engines that reinforce synergies with existing businesses ▲ improving governance in line with global standards and communicating with stakeholders ▲ establishing a long-term ESG (environmental, social, governance) strategy and establishing a crisis management system, etc. I chose.

He added, “I hope that the company’s top management and the board of directors will cooperate so that procedural rights can be secured faithfully on such shareholder proposals, and furthermore, we sincerely review and communicate with all shareholders accurately and transparently.”

Managing Director Park criticized Kumho Petrochemical’s decision to acquire Kumho Resort. Kumho Petrochemical held a board meeting on the 23rd and decided to take over Kumho Resort. Managing Director Park said, “It has no business relationship with Kumho Petrochemical, but rather opposes the acquisition of Kumho Resort, which undermines the company’s corporate value and shareholder value. The company’s investment decisions can maintain continuity with the existing business and reinforce synergy. It must be done in the direction that it is.” In addition, he pointed out that the decision to acquire Kumho Resort, which has a debt ratio of 400%, is “the board of directors of Kumho Petrochemical is a decision that undermines the value of the company and the interests of shareholders.”

Next, Managing Director Park said, “To prevent inappropriate decision-making such as the acquisition of Kumho Resort, and further improve corporate value and shareholder value through future growth management based on reinforcing existing business in a rapidly changing and fiercely competitive global business environment. We made a shareholder proposal,” he added.

Earlier, Managing Director Park Chul-wan made a proposal to the shareholders in January that Kumho Petrochemical should increase its dividend. In addition, he requested that the four outside directors of Kumho Petrochemical, whose terms of office expire next month, be replaced with those recommended by Park. As a candidate for the executive director, Park himself recommended.