Choi Tae-won Directly Addresses SK Siltron Controversy

'Whether the Acquisition Was at a Bargain Price' Attendance at the Fair Trade Commission Plenary Session
Emphasis on the Authenticity of the Acquisition and Transparency of the Process

Choi Tae-won, Chairman of SK Group. (File photo)

[Asia Economy Reporters Joo Sang-don (Sejong) and Hwang Yoon-joo] SK Group Chairman Chey Tae-won will personally attend the Fair Trade Commission (FTC) plenary session that will make the final judgment on the allegation that he acquired SK Siltron shares at a bargain price. It is unusual for the head of a large corporation to appear directly at the plenary session, and it is analyzed as an intention to strengthen the claim that the share acquisition was not illegal.

According to the FTC and related industries on the 17th, he will appear in person at the FTC plenary session scheduled for the 15th of next month to review the case of 'unfair provision of benefits to SK's related parties.'

The plenary session is the highest decision-making body of the FTC and corresponds to the first trial. However, unlike court trials, the parties do not need to appear in person. Most often, representatives (lawyers) attend and argue. Chairman Chey’s direct attendance at the plenary session can be seen as a move to emphasize the authenticity of the 'SK Siltron share acquisition.'

The controversy surrounding SK Siltron dates back to 2017. SK Siltron is a company that manufactures silicon wafers, a core semiconductor material, originally part of LG Group. In January 2017, SK Inc. acquired 51% of the shares, making it part of SK Group. In April of the same year, SK secured an additional 19.6% of the remaining 49%, surpassing the special resolution requirement to hold 70.6% of the shares. Since more than 70% ownership was required for a name change and other purposes, the remaining shares were not strategically purchased. At the time, this was regarded as a 'win-win deal' aligning SK’s efforts to strengthen its semiconductor business with LG’s intention to divest non-core businesses.

The remaining 29.4% of Siltron shares held by creditors including Woori Bank were purchased by Chairman Chey. It is reported that Chairman Chey made this decision considering issues related to foreign capital acquiring shares amid fierce global semiconductor competition.

However, the FTC judged that SK violated the Fair Trade Act during the acquisition process of Siltron and sent a review report (equivalent to a prosecutor’s indictment) containing these details in August. The review report reportedly included that Chairman Chey and SK violated the 'prohibition of corporate opportunity usurpation' under the Fair Trade Act and that a prosecution of Chairman Chey was necessary. It was considered a violation of the Fair Trade Act by transferring the opportunity for the company to purchase shares cheaply to Chairman Chey.

The upcoming plenary session next month is expected to feature disputes over Chairman Chey’s acquisition process of Siltron shares. SK emphasizes that the procedure and process were transparent since the shares were acquired through a public competitive bidding led by creditors including Woori Bank. The results of the review are expected to be announced within next month after the plenary session.

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