Kumho Petrochemical 'Fierce Battle'... Company Issues Strict Warning to Park Cheol-wan for Disclosure Violation and Spreading False Information

"Illegal Electronic Proxy Solicitation via Personal Homepage Without Electronic Proxy Disclosure"

"Suspicion of False Information Spread Claiming to Impersonate Company Voting Proxy"

"Concerns Over Shareholder Rights Violations... Considering Legal Action if Behavior Continues"

[Asia Economy Reporter Moon Chaeseok] Kumho Petrochemical launched a counterattack after Park Cheolwan, former executive director and largest shareholder, repeatedly criticized the company for insufficient shareholder-friendly policies just ten days before the regular general shareholders' meeting. The company revealed that it detected circumstances of spreading false information, including illegal recruitment of friendly forces through electronic proxy voting and impersonation of most proxy voters. It sternly warned that legal action would be considered if such behavior continues.

Park Cheol-wan, former executive director of Kumho Petrochemical, appears on the website with electronic proxy guidance related to shareholder proposals. (Source: Kumho Petrochemical)

On the 15th, Kumho Petrochemical issued a press release stating "illegal activities detected" just over two hours after former executive Park criticized the company for a low dividend payout ratio and insufficient treasury stock cancellation, which allegedly caused the stock price to fall. Kumho Petrochemical expressed concern, saying, "We have detected violations of disclosure obligations and circumstances of spreading false information by former executive Park's side, which we believe could infringe on shareholders' rights," and added, "If such acts continue, related legal measures will be inevitable."

Proxy voting delegation disclosure submitted by former Executive Director Park's side. Kumho Petrochemical pointed out that, contrary to the guidance given to shareholders on the website by former Executive Director Park's side, the company disclosed to the Financial Supervisory Service that electronic proxy voting was "not applicable." (Data=Kumho Petrochemical)

The company first claimed that former executive Park's side violated the Capital Markets Act regarding disclosures related to electronic proxy voting. The company stated, "Former executive Park's side is providing information about the receipt of electronic proxy forms and necessary specific details through their shareholder proposal website." It added, "Former executive Park's side prepared and disclosed reference documents on the 10th for soliciting proxy voting rights under Article 152 and subsequent articles of the law. However, contrary to the guidance on their website, the electronic proxy form section in the reference documents is marked 'Not Applicable,' and the related electronic proxy form template is not attached."

A post on a shareholder bulletin board of a portal site containing claims by former Executive Director Park's side that Kumho Petrochemical is impersonating a proxy for voting rights. (Data=Kumho Petrochemical)

Furthermore, the company alleged impersonation of proxy voters mainly on shareholder bulletin boards on portal sites. Kumho Petrochemical said, "Messages appearing to be from employees of the entrusted institution soliciting proxy voting rights on behalf of former executive Park's side are being circulated mainly on shareholder bulletin boards of portal sites," adding, "Our company's proxy voting solicitation period starts today, but there are claims that we are illegally soliciting proxies in violation of this and impersonating former executive Park's proxies."

It continued, "This is clearly false information," and stated, "The legal start date for our proxy voting solicitation period was the 12th, and we have complied with this period." According to Kumho Petrochemical, the legal start date for proxy voting solicitation is two business days after the disclosure of reference documents; the company’s period began on the 12th, and former executive Park’s side’s period starts today.

Kumho Petrochemical added, "Even if we receive proxy forms delegated to former executive Park, we must exercise voting rights according to their contents, so there is absolutely no reason to impersonate shareholder Park Cheolwan’s side, nor have we ever done so."

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