[Asia Economy Reporter Lim Jeong-su] The merger between Haesung Industrial, the holding company of Haesung Group, and its core affiliate, Hanguk Paper, has been finalized.
Haesung Industrial announced on the 27th that the merger proposal between the two companies was approved as originally planned at the extraordinary general meeting of shareholders held that day. Accordingly, Hanguk Paper, the absorbed company, will be merged into Haesung Industrial as of the merger date on July 1.
At the extraordinary general meeting of Haesung Industrial, shareholders holding 61.55% of the shares attended and unanimously approved the merger proposal. On the same day, at Hanguk Paper’s extraordinary general meeting, shareholders holding 42.32% of the shares attended and all attendees reportedly approved the merger proposal.
Haesung Industrial has focused on office building leasing and building management businesses while holding shares in affiliates such as Hanguk Paper. Hanguk Paper expanded its business areas from printing paper and copy paper manufacturing to specialty paper, corrugated cardboard, and whiteboard paper businesses. With this merger, the company plans to leap forward as a comprehensive paper and packaging group.
Jo Ju-yeon, CEO of Haesung Industrial, stated, "The shareholders of both companies recognized the stability and growth potential of the business plan, so the merger proposal was approved relatively smoothly. We can now focus on strengthening our business competitiveness."
Haesung Industrial and Hanguk Paper will accept stock purchase requests until July 16 and plan to complete the merger process by mid-July.
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