KGC Ginseng Corporation "Welcomes Court's Dismissal of Injunction to Postpone Agenda on Demerger"

Activist fund Anda Asset Management's injunction request to the court, demanding that the KT&G shareholders' meeting agenda include the agenda for the personnel split of the Korea Ginseng Corporation, was dismissed, and KGC Ginseng Corporation announced on the 14th that it welcomes this decision.

The Daejeon District Court dismissed the injunction filed by Anda Asset Management against KT&G on the 3rd of this month to include the agenda item, the day before. According to KT&G, the court judged that the personnel split of the ginseng business division violated the law or was an unfeasible matter for the company, and thus it was justified to refuse to include it as an agenda item.

KGC Ginseng Corporation stated, "We welcome the court's decision, and since the personnel split agenda of the Korea Ginseng Corporation is a matter that cannot be proposed by shareholders legally, the opposing party's forcible injunction request was an unreasonable action, so we consider this a natural outcome.” They added, “The proposed spin-off listing plan also raises concerns that it could adversely affect KGC Ginseng Corporation's corporate value and shareholder value.”

They also added, "Previously, private equity funds including Anda Asset Management have advocated for the personnel split listing of the Korea Ginseng Corporation and have mentioned individuals without expertise in the ginseng business as candidates for KGC Ginseng Corporation's CEO and outside directors."

KGC Ginseng Corporation was separated from Korea Tobacco & Ginseng Corporation, the predecessor of KT&G, in 1999. At that time, KGC Ginseng Corporation's sales were about 120 billion KRW, and last year, sales recorded approximately 1.3 trillion KRW, increasing more than tenfold in about 20 years.

KGC Ginseng Corporation argued, "With KGC Ginseng Corporation's overseas business gaining momentum, there are concerns that the private equity funds' personnel split claim could potentially hinder the globalization of the Korean ginseng industry."

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