Market Insight Propaganda Declaration Park Cheol-wan, who will help her, appeared… Kumho Petrochemical’s management rights disputes remain in the fog

Stock prices surge in’nephew’s nan’

Some managers “no harm”
Unprecedented dividends and board change
Managing Director Park Chul-wan, votes gathered
3% rule applied… Auditor Senior Yuri

The national pension that President Park objected to…
Kumho Petrochemical achieved the highest performance last year
The burden of side by side with my nephew, whose ability has not been verified
Equity difference 4%P… Interest in the March shareholders’ meeting

▶Market Insight Feb 5 @ 10:53am

The dispute over the management rights of Kumho Petrochemical in which the’nephew’s dilemma’ took place is unusual. It is because some shareholders, including large funds and institutional investors, are showing a move to join Kumho Petrochemical’s managing director Park Chul-wan, the nephew of Chairman Park Chan-goo, who rebelled against Chairman Park Chan-gu.

According to the business and asset management industry on the 5th, an overseas asset management company that recently owns more than 1% of Kumho Petrochemical’s shares has decided to agree to the shareholders’ proposal from Park, which announced a dramatic increase in dividends. It is also known that LK Asset Management, which also holds about 1%, is also on the side of Park. The gap between Chairman Park (14.86%) and Managing Director Park (10.0%) is only about 4.8 percentage points, and it is evaluated that uncertainty has arisen in the direction of management rights when Park secured a favorable stake of 2% or more.

Park, the son of the late Chairman Park Jung-koo (2nd son), who led the Kumho Asiana Group until 2002, announced on the 27th of last month that he would resolve his special relationship with Chairman Park and exercise shareholder rights independently. Blown up. In particular, it is shaking the hearts of managers with the claim to raise the dividend to 11,000 won per common share (11,100 won of preferred stock), which is more than 7 times the existing dividend. For managers, the situation could be’eating a pheasant and eating eggs’ even with the effect of rising stock prices due to the dispute and increasing dividends.

At the regular shareholders’ meeting in March this year, Park proposed that he would recommend himself (inside director) and acquaintances (outside directors and audit committee members) for the positions of one inside director and four outside directors whose terms of office expire. In addition, the so-called ‘3% rule’ is applied when appointing an audit committee member due to the revision of the commercial law from this year. Park’s voting rights are also limited to 3%, but it is also possible to appoint an auditor if friendly shareholders empower him.

If Park succeeds in entering the board of directors at the shareholders’ meeting in March, the use of treasury stocks (18.36%), mentioned as a means of defending the company’s management rights, may also be difficult. Treasury stocks do not have voting rights on their own, so they must be handed over to a third party (Kiisa Baek) to exercise their voting rights. In this process, if the director of Managing Director Park opposes, it may not be easy to hire Baek.

The fact that the national pension system (7.91%), the single second-largest shareholder, has mechanically voted against Park for the reason that President Park was ruled out of office, which is a burden for Park. However, as Chairman Park remains in office this year, it is unclear which side the National Pension plan will take or maintain a neutral attitude.

An official from an asset management company said, “Unlike Chairman Park, who achieved the highest performance in history last year, if the company’s intrinsic value is shaken if Park, whose management ability has not been verified, takes control, it is impossible to unconditionally take the side of the challenger because the stock price increases I said.

Reporter Joonho Cha/Eun Lee, [email protected]

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