Park Cheol-wan, Executive Director of Kumho Petrochemical, "Court's Decision to Submit High Dividend Agenda, Respect for Legitimate Shareholder Proposal"

Conflict Over High Dividends Inevitable at General Meeting... Intensified Management Dispute Between Chairman Park Chan-gu and Kumho Petrochemical

Park Cheol-wan, Executive Director at Kumho Petrochemical

[Asia Economy Reporter Minwoo Lee] Park Cheol-wan, Executive Director of Kumho Petrochemical, who is engaged in a management rights dispute with his uncle Park Chan-gu, Chairman of Kumho Petrochemical, welcomed the court's partial acceptance of his proposed cash dividend plan, stating that his legitimate proposal to enhance shareholder value has been respected.

On the 11th, Executive Director Park said, "I actively welcome the court's decision to put the dividend agenda on the table," adding, "It is fortunate that the current board's attempt to damage shareholder value by not putting my dividend agenda on the table has been prevented."

The day before, the Civil Division 50 of the Seoul Central District Court (Chief Presiding Judge Song Kyung-geun) partially accepted Executive Director Park's injunction request to have the agenda item submitted at the shareholders' meeting against Kumho Petrochemical. The agenda proposed by Executive Director Park will be put on the agenda at the regular shareholders' meeting on the 26th, and the contents of the agenda must be notified to shareholders at least two weeks before the meeting. Earlier, Executive Director Park proposed raising Kumho Petrochemical's dividends to 11,000 KRW per common share and 11,050 KRW per preferred share, about seven times higher than last year.

Executive Director Park pointed out, "Considering that Kumho Petrochemical's current dividend amount is less than one-fifth of its competitors and one-third of the KOSPI average, the company's claim that the dividend increase is excessive does not reflect reality." He added, "It is important that efforts to enhance shareholder value continue," and "The upcoming regular shareholders' meeting is an important occasion to understand and reflect shareholders' intentions, so I hope the company will engage in communication more actively and sincerely than ever before."

Meanwhile, Executive Director Park, the son of the late Park Jung-gu, former Chairman of Kumho Group, is the largest shareholder holding 10% of Kumho Petrochemical's shares. Last month, he declared an independent course, saying he would cut ties with Chairman Park and start a management rights dispute. Chairman Park Chan-gu and Park Jun-kyung, Executive Director of Kumho Petrochemical and son of Chairman Park, hold 6.7% and 7.2% of shares respectively. Including related parties, their combined shareholding is about 14%.

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