Kumho Petrochemical "Executive Director Park Cheol-wan to Take Action According to Shareholder Proposal Laws"

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical issued an official statement just one day after Executive Director Park Cheol-wan's shareholder proposal. On the 28th, Kumho Petrochemical announced that it will review the shareholder proposals regarding outside directors, auditor recommendations, and dividend expansion, and take action in accordance with relevant laws and regulations.

A Kumho Petrochemical official stated, "We will carefully review the contents of the shareholder proposal and the recent situation, and then take measures according to relevant laws and regulations." Previously, Kumho Petrochemical did not comment when Executive Director Park Cheol-wan disclosed that he was 'not a related party.' In today's official statement, the company explained, "As of the end of December last year, we received shareholder proposals from Executive Director Park Cheol-wan, who is a major shareholder related party and currently serving as an inside executive, regarding outside directors, auditor recommendations, and dividend expansion." Since Executive Director Park Cheol-wan, nephew of Chairman Park Chan-gu, denied being a related party, suspicions of a 'management rights dispute' have arisen.

Kumho Petrochemical's position on Executive Director Park's shareholder proposal is that, despite achieving record performance amid difficulties caused by COVID-19, it is unreasonable to suddenly demand changes to the current management and excessive dividends without prior consultation under the pretext of a shareholder proposal.

A Kumho Petrochemical official emphasized, "As Executive Director Park, as a common shareholder, requests management changes such as director appointments and excessive dividends through shareholder proposals, the company and current management will carefully review the details and respond prudently," adding, "We urge shareholders not to be swayed by the movements of disruptive forces attempting to provoke a management rights dispute and gain economic benefits through short-term stock price increases."

Meanwhile, as of the third and fourth quarters of last year, Executive Director Park holds the largest stake in Kumho Petrochemical at 10.0%. Chairman Park holds 6.69%, his son Executive Director Park Jun-kyung holds 7.17%, and his daughter Executive Director Park Ju-hyung holds 0.98%. Even combined, the three hold about 14.84%. Because of this, there are expectations that Executive Director Park may be preparing to engage in a full-scale management rights dispute over Kumho Petrochemical with external allies.

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