Kumho Petrochemical Dismisses Executive Director Park Cheol-wan in Management Dispute for "Breach of Fiduciary Duty"

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical has dismissed Executive Director Park Cheol-wan, the nephew who was engaged in a management rights dispute with Chairman Park Chan-gu.

On the 31st, Kumho Petrochemical stated, "Executive Director Park Cheol-wan, who was in charge of overseas rubber sales, violated his duty of loyalty to the company, and his delegation contract was terminated in accordance with relevant regulations."

Director Park is the youngest son of the late Park Jung-gu, former chairman of Kumho Group, and earlier this year declared the termination of his special relationship with Chairman Park Chan-gu, initiating a management rights dispute.

Subsequently, he aggressively pursued shareholder proposals including unprecedented high dividend plans and changes in management and the board of directors, attempting to enter as an inside director, but suffered a complete defeat in the vote at the regular shareholders' meeting on the 16th.

Although Director Park has been dismissed from Kumho Petrochemical, the management rights dispute is expected to continue. He remains the largest individual shareholder of Kumho Petrochemical and has recently expanded friendly shares centered around his family. After the shareholders' meeting, Director Park expressed his intention to continue voicing his stance, saying, "This is not the end but the beginning."

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