Park Chan-gu, Chairman of Kumho Petrochemical Group (left) and Park Chul-wan, Managing Director of Kumho Petrochemical (Photo = Kumho Petrochemical)
While managing director Park Chul-wan, Kumho Petrochemical, rebelled against her uncle, the financial world is paying attention to who other forces are in solidarity with Park Chul-wan. The possibility of solidarity with the construction group IS Dongseo (IS Dongseo) is reported by many media, so it seems likely to be true. In addition, E&F PE and Time Folio Asset Management are likely to be directly or indirectly involved in the case. It was confirmed as a result of the interview.
Determining which forces are encouraging management disputes is an important task in determining the nature of the dispute. If managing director Chul-wan Park is spreading the front line of disputes through solidarity, rather than solely, the case can be viewed as a move aimed at gains from minority shareholders rather than the interests of majority shareholders.
Looking at the announcement on the 27th by Managing Director Park Chul-wan, it becomes clear that he was rebelled against his uncle (Park Chan-gu, chairman of Kumho Petrochemical Group), who runs Kumho Petrochemical and Kumho Petrochemical Group.
In the public announcement, he said, “Exercising of the right to propose shareholders under the Commercial Act in relation to subparagraphs of Article 154 (1) of the Enforcement Decree of the Capital Market and Financial Investment Business Act (election/dismissal of directors and auditors, or suspension of duties) “We want to exercise our rights as shareholders in accordance with the scope and method permitted by laws and regulations,” he said. “We are making a new report (holding 10% stake) by resolving special relationships and changing the representative reporter by dissolving the relationship with the existing representative reporter.” .
There are sentences that are difficult to interpret, but in simple terms, it means that managing director Park Chul-wan will make a shareholder proposal for the appointment and dismissal of directors at Kumho Petrochemical, which is run by his uncle. He also revealed that he had resolved the special relationship between his uncle and relatives, in order to lower himself as a general shareholder rather than a major shareholder. Shareholder proposals can be made by general shareholders to large shareholders, and shareholders cannot make proposals if the person who has a 10% stake is bound by a special relationship with the large shareholder. It is a stoppage to make some kind of shareholder proposal by placing itself in the position of general shareholder.
It is considered surprising that he made such a public announcement after 10 years of joining Kumho Petrochemical, who had not worked internally or externally outside of the position of executives in the synthetic resin and synthetic rubber divisions for the past 10 years.
In particular, to Managing Director Park Chul-wan, Chairman Park Chan-koo was a person who gave and took office positions when a quarrel broke out with former Kumho Asiana Group Chairman Park Sam-koo. Former Chairman Park Sam-koo, who was on the verge of conflict, was not able to confront the past at all, and even when Kumho Asiana Group was in danger of collapse due to the unreasonable management of former Chairman Park Sam-koo, he suddenly rebelled against the company he was in and disputed. No one expected it would cause.
The business community is putting heavy weight on the fact that the shareholders’ proposal by Park Cheol-wan will be difficult to accept at the shareholders’ meeting. His 10% stake is less than that of Chairman Park Chan-gu (14.27%). It is analyzed that even if it attracts friendly shares, it will be far less than the friendly shares that will help Chairman Park Chan-gu.
The justification is also weak. Kumho Petrochemical is regarded as a company with steady earnings and high dividends. Chairman Park Chan-koo’s solid management has led to a friendly relationship with foreign investment funds such as Black Rock.
The business community is paying attention that Park Cheol-wan, who is not aware of this, has suddenly done something that can be labeled as an internal rebel after 10 years. It is speculated that there will be a hidden stake in the friendly and there was pressure to create a dispute structure due to the interests of the friendly forces.
real <블로터> As a result of the interview, it was confirmed that Time Folio Asset Management also purchased a minority stake in Kumho Petrochemical. An official in the asset management industry said, “Although I skipped it, I know that I bought a small number of shares in Kumho Petrochemical.” Time Folio Asset Management is where Hwang Seong-hwan is the representative. In addition, some other asset management companies are known to have purchased Kumho Petrochemical shares.
However, it is not known what kind of relationship between Time Folio Asset Management and Managing Director Park Chul-wan. Therefore, it is not clear how Time Folio Asset Management is involved in the internal rebellion of Managing Director Park Chul-wan. It is difficult to rule out the possibility that Time Folio Asset Management purchased a stake in Kumho Petrochemical from a simple investment perspective.
The fact that IS Dongseo’s share purchase is well known through various media outlets. IS Dongseo is known to have purchased and owned a 3-4% stake in Kumho Petrochemical. As the ownership ratio does not exceed 5%, there is no obligation to disclose the ownership ratio yet. IS Dongseo’s CEO Kwon Min-seok is the son of IS Dong-seo founder Kwon Hyeok-woon. Representative Kwon Min-suk and Park Cheol-wan, executive director, have a common point of being the same age and from the same school.
In addition, the possibility that E&F PE is involved is raised by some of the business circles. E&F PE is where most of the private equity funds invested by IS Dong-seo were designed and managed. Since 2014, it has been a partner and mainly invested in environmental businesses and waste disposal companies. It is well documented in the business report of IS Dongseo that IS Dongseo is investing in most of the private equity funds established by E&F PE.
It is not known what kind of relationship between Time Folio Asset Management, IS Dongseo, and E&F PE through managing director Chul-wan Park as an intermediary. However, it is enough to speculate that the relationship may be strong due to the past investment history.
If it is true that these companies are guardians behind managing director Park Cheol-wan, then the nature of Park Cheol-wan’s proposal for shareholders should be different. Rather than a shareholder proposal to actively enhance the corporate value of Kumho Petrochemical, it is more likely a shareholder proposal for the interests of minority shareholders and intentionally seen as a dispute over management rights.
An official in the business world said, “From a few years ago, there have been more funds and minority shareholders that have made shareholder proposals on the basis of improving corporate governance. He said, “The intention of Park Chul-wan has not been accurately revealed yet, but the trend of Kumho Petrochemical’s stock price from the second half of last year is enough to doubt.”