Park Cheolwan, Kumho Petrochemical Executive Director, "Opposes Kumho Resort Acquisition"

"Unrelated and Damaging to Corporate and Shareholder Value... Shareholder Proposal Has Legitimate Purpose"

Park Cheol-wan, Executive Director at Kumho Petrochemical

[Asia Economy Reporter Hwang Yoon-joo] Park Cheol-wan, Executive Director of Kumho Petrochemical, who is engaged in a management rights dispute with his uncle Park Chan-gu, Chairman of Kumho Petrochemical, has made a shareholder proposal for sustainable growth and expressed opposition to the acquisition of Kumho Resort.

On the 23rd, Executive Director Park stated, "Kumho Petrochemical held a board meeting and decided to acquire Kumho Resort," adding, "I oppose the acquisition of Kumho Resort, which has no business relevance to Kumho Petrochemical and rather damages the company's corporate value and shareholder value."

He criticized the decision to acquire Kumho Resort, saying, "The company's investment decisions should be made in a way that maintains continuity with existing businesses and strengthens synergy." Executive Director Park explained that acquiring Kumho Resort, which has a debt ratio of 400%, is a decision that harms the company's value and shareholders' interests.

Executive Director Park said, "I made a shareholder proposal to check inappropriate investment decisions like the acquisition of Kumho Resort and to enhance corporate value and shareholder value through future growth management based on strengthening existing businesses in a rapidly changing and fiercely competitive global business environment."

He added, "As an executive who wishes for greater growth and development of Kumho Petrochemical and as the largest individual shareholder, I have requested a shareholder proposal through proper procedures for the sustainable future of Kumho Petrochemical," and expressed hope that "this shareholder proposal will be the first step to not only sustainable growth of Kumho Petrochemical but also increasing corporate value and shareholder value."

Executive Director Park expressed his intention to participate in Kumho Petrochemical's management, saying, "'By strategic management and business operations through comprehensive corporate restructuring, we can create a future-leading company with the goal of achieving a market capitalization of 20 trillion won by 2025.'"

Meanwhile, Executive Director Park recently intensified the management rights dispute by severing the 'special relationship' with Chairman Park. Along with this, he is seeking shareholder support at the March regular general meeting of shareholders to appoint inside and outside directors through shareholder proposals such as unprecedented dividends at Kumho Petrochemical.