CEO Hwang Jae-woo: "Claims About Former Co-CEO Are Inaccurate"

Published 23 Mar.2021 11:15(KST)

[Asia Economy Reporter Hyungsoo Park] Hwang Jae-woo, CEO of Samyoung ENC who has returned to the front lines of management, stated on the 23rd, "Recently, former co-CEOs Hwang Hye-kyung and Lee Seon-gi, along with outside director Jo Kyung-min, have been making claims that are not true with the intent to seize management control."

Former co-CEOs Hwang Hye-kyung and Lee Seon-gi issued convertible bonds worth 10 billion KRW in January last year. CEO Hwang Jae-woo's side claimed, "We have confirmed circumstances indicating that the former CEO was exploring bank loans to exercise a 6 billion KRW call option, but this was aborted after he was dismissed from the CEO position in January this year."

He added, "The decision was made to seek practical benefits through the low exercise price of the convertible bonds, which runs counter to enhancing shareholder value," and emphasized, "Although it was claimed that long-term investors were attracted, in reality, selling treasury shares at a discounted price below market value to secure friendly shares is also an act unrelated to increasing corporate value."

Regarding the 6 billion KRW call option, CEO Hwang's side stated that they plan to gather shareholders' opinions to enhance shareholder value and corporate value.

CEO Hwang's side emphasized, "Under the pretext of fairness, the former CEO is abusing the appointment of an inspector he requested, as if the company could have committed illegal acts."

They continued, "For the board of directors to approve the financial statements, there must be a separate resolution of approval by the board substituting for the shareholders' meeting approval after satisfying the auditor's report with an unqualified opinion and the auditor's consent," and said, "Without proper understanding, the former management is conveying false information regarding the approval of the financial statements at the settlement board meeting held before the auditor's opinion was issued."

CEO Hwang's side claimed that since the former CEO has not been attending work despite being an inside director after the shareholders' meeting in January this year, they have no choice but to hold him accountable.