Kumho Petrochemical "Victory in Lawsuit Confirming Invalidity of Treasury Stock Disposal Raised by Park Cheol-wan"

Kumho Petrochemical announced on the 30th that it won the lawsuit filed by its largest individual shareholder, former Executive Director Park Cheol-wan, seeking to nullify the disposal of treasury shares.

Regarding the mutual exchange of treasury shares between Kumho Petrochemical and OCI for the purpose of a strategic alliance, former Executive Director Park and three others filed a 'claim for confirmation of invalidity of treasury share disposal' against Kumho Petrochemical in June last year, and on this day, the 31st Civil Division of the Seoul Central District Court (Presiding Judge Kim Sang-woo) dismissed the case.

Previously, in 2021, Kumho P&B Chemicals of the Kumho Petrochemical Group and OCIMSB, a Malaysian subsidiary of the OCI Group, announced the establishment of OCI Kumho (OCIKUMHO), an eco-friendly bio ECH (epichlorohydrin) joint venture, and exchanged treasury shares worth 31.5 billion KRW to strengthen their strategic partnership.

They exchanged 171,847 shares of Kumho Petrochemical common stock and 298,900 shares of OCI common stock, and Kumho Petrochemical decided to additionally cancel 171,847 shares, equal to the number of exchanged shares, to enhance shareholder value.

At that time, former Executive Director Park claimed this was for the purpose of defending management rights and filed a provisional injunction to prohibit OCI from exercising voting rights at the Seoul Central District Court in February last year. Although the court dismissed the injunction, he subsequently filed the main lawsuit and received a dismissal ruling on this day.

OCIKUMHO is currently carrying out planned procedures, including recently passing the Environmental Impact Assessment (EIA) in Malaysia.

Kumho Petrochemical Headquarters, Jung-gu, Seoul [Photo by Kumho Petrochemical]

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