Park Chan-gu, Suppressing Another 'Nephew Rebellion'... "Court Dismisses Injunction to Prohibit Park Cheol-wan's Voting Rights"

Recognition of Voting Rights for Friendly Shareholder OCI

Chairman Park Chan-gu of Kumho Petrochemical. (Photo by Kumho Petrochemical)

[Asia Economy Reporter Moon Chaeseok] Kumho Petrochemical announced on the 22nd that the court recently dismissed the provisional injunction request filed by former Kumho Petrochemical executive Park Cheolwan, the largest individual shareholder, to prohibit OCI from exercising voting rights.

Previously, in December last year, Kumho Petrochemical exchanged 31.5 billion KRW worth of treasury shares with OCI, with whom they planned to establish a joint venture. In response, Park, who initiated a management rights dispute, claimed that the share exchange between the two companies was intended to "defend management rights" and filed a provisional injunction with the Seoul Central District Court to prohibit the exercise of voting rights on the exchanged shares.

Park Cheol-wan, former executive director, nephew of Park Chan-gu, chairman of Kumho Petrochemical, and the largest shareholder. (Photo by former executive director Park)

The court judged that "Kumho Petrochemical's disposal of treasury shares is not unusual, and no unreasonable circumstances were found in the disposal process," the company said. A Kumho Petrochemical official emphasized, "It has been reaffirmed that the strategic alliance with the OCI Group is a legitimate business activity. We will continue to pursue new business discovery and business expansion and actively seek strategic partnership relationships."

Former executive Park had initiated a management rights dispute last year against his uncle, Kumho Petrochemical Chairman Park Changu, but was defeated in the vote and dismissed from the company. This year, he also submitted separate shareholder proposals different from the company's on profit dividends and the appointment of outside directors, and accordingly, another vote battle is expected at the regular shareholders' meeting on the 25th.

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