Kumho Petrochemical Management Dispute Rekindled... Former Executive Park Cheolwan Sends Shareholder Proposal

Vote Battle Expected Ahead of March General Meeting
Recommendation of 2 Successors for Outgoing Outside Directors
"Aiming for Management Transparency and Enhancing Shareholder Value"

Park Cheol-wan, former executive director of Kumho Petrochemical

[Asia Economy Reporter Moon Chaeseok] Park Cheol-wan, former executive director and largest shareholder of Kumho Petrochemical, has sent a shareholder proposal to the company. Park, who was dismissed after losing a vote against his uncle, Chairman Park Chan-gu, at last year's Kumho Petrochemical shareholders' meeting, is known to have proposed recommending successors for two outside directors whose terms are expiring.

On the 9th, Park's side stated that the shareholder proposal was sent with the purpose of enhancing management transparency and shareholder value ahead of next month's Kumho Petrochemical shareholders' meeting. A shareholder proposal means that general shareholders directly present agenda items at the shareholders' meeting. If demands are sent to the company six weeks before the meeting, the agenda is addressed at the meeting. Proposals usually concern dividends, appointment of directors, and auditors.

Park is the largest individual shareholder holding 8.5% of the company's shares. His family holds more than 10% of the total shares. Park is the eldest son of the late Park Jeong-gu, former Kumho Group chairman and the second elder brother of Chairman Park. As the largest individual shareholder of Kumho Petrochemical, Park also made shareholder proposals at last year's meeting.

This time, Park is known to have included in his shareholder proposal the recommendation of candidates to succeed two outside directors whose terms are expiring on Kumho Petrochemical's board.

Park's side said, "Our late father, Chairman Park Jeong-gu, managed the company with interest in mergers and acquisitions (M&A) and research and development (R&D) investments for future growth," adding, "Although Kumho Petrochemical is currently posting record-high profits, the stock price remains low. To resolve this issue and continue our father's legacy by making Kumho Petrochemical's management transparent and rational, and to grow it into a global company, we have sent this shareholder proposal." They further stated, "We plan to disclose detailed contents of the shareholder proposal to general shareholders later."

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