KCGI "Strong Response to False Rumors Including Allegations of Collusion by Short Selling Forces"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] KCGI has announced a firm stance to take strong action against false information circulating in the market, such as allegations of collusion with short-selling forces and rumors of Chinese capital involvement.

On the 19th, KCGI stated, "Ahead of the Hanjin KAL regular shareholders' meeting, false information is being spread online claiming that KCGI is colluding with short-selling forces to deliberately lower Hanjin KAL's stock price and that KCGI's investment funds are Chinese capital. These rumors are completely unfounded."

KCGI emphasized, "We are closely monitoring the dissemination of false information on the internet, and if malicious rumors continue to be generated, we plan to take necessary legal actions this week, including criminal complaints for defamation under the Information and Communications Network Act and claims for damages."

KCGI explained, "It is currently impossible to engage in short selling with the Hanjin KAL shares we hold," adding, "Because KCGI and its affiliates' stock holdings are subject to large-scale holding reporting obligations under capital market laws." If KCGI were to enter into collateral or lending agreements for short selling, it would be required to make separate disclosures under Article 147, Paragraph 4 of the Capital Market Act and Article 155 of the Enforcement Decree. However, there has been no disclosure indicating that KCGI has entered into any such agreements for short selling.

KCGI stated, "If Hanjin KAL's stock price falls, not only does the value of the shares we hold decrease, but since we have stock-collateralized loans, the collateral ratio becomes unfavorable," adding, "There is no reason to deliberately lower the stock price through short selling."

KCGI also denied rumors that its investment funds are Chinese capital. They claim that all KCGI investors are domestic investors, as disclosed to the Financial Supervisory Service and the Fair Trade Commission.

KCGI explained, "When establishing the PEF, we reported all related investor statuses to the Financial Supervisory Service, and during the process of filing a business combination report with the Fair Trade Commission due to KCGI holding more than 15% of Hanjin KAL shares, the commission reviewed whether any investors were related to the aviation industry or if there were any monopoly-related issues."

This content was produced with the assistance of AI translation services.