Truston Welcomes KCC’s Decision to Optimize Assets: “Withdrawing Shareholder Proposal, Building Partnership”

"KCC Reflects Core Purpose of Shareholder Proposal"
"Expecting Transparent Timelines and Consistent Communication"

Truston Asset Management has expressed its support for the KCC board’s decision to enhance shareholder value, announcing that it will withdraw the shareholder proposal it had submitted for the upcoming annual general meeting.

On March 16, Truston stated, “We have received an official letter from KCC indicating that the company will sell investment-purpose assets at an appropriate time and return a portion of the profits from those sales to shareholders.”

Currently, KCC holds shares in several listed companies, including Samsung C&T, for investment purposes. As of this day, the value of these assets amounts to 5.264 trillion won, which exceeds KCC’s market capitalization of 4.541 trillion won. The market has long believed that KCC’s holdings in Samsung C&T are unlikely to be sold, given their strategic importance as friendly shares within the Samsung Group, and this has been cited as a key reason for the undervaluation of KCC’s stock.

Truston analyzed that KCC’s first official declaration of its intention to dispose of investment assets and return profits to shareholders is highly symbolic. KCC also conveyed that it will consider additional shareholder return measures based on consolidated financial statements if the performance of Momentive, its core growth driver, returns to normal.

A Truston representative stated, “We believe KCC has accepted most of our shareholder proposal, so instead of unnecessary conflict with the board, we have decided to withdraw our proposal in the interest of constructive cooperation.”

Previously, on March 9, KCC announced via disclosure that it would cancel 1,174,300 treasury shares, excluding those reserved for employee compensation, by September next year. Truston assessed this as a measure to address market concerns over excessive long-term treasury share holdings and expressed hope that it would serve as a catalyst for a rise in KCC’s stock price.

The Truston representative added, “This decision marks an important milestone, as the KCC board has begun to genuinely reflect the reasonable voices of ordinary shareholders in management. In respect of management’s decision, we are withdrawing our shareholder proposal and will continue constructive dialogue so that KCC can transform into a leading company trusted by the capital market.”

Truston sees this decision as a starting point for enhancing corporate value, and plans to continue its role as a shareholder by monitoring the transparent disclosure of the investment asset disposal schedule and the consistency of market communications going forward.

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