Park Cheolwan, Executive Director of Kumho Petrochemical, "We should sell treasury shares and list affiliates such as Kumho P&B"

Three Additional Shareholder Proposals Revealed: Treasury Stock Sale, Dividend Increase, Affiliate IPO, Non-Operating Asset Sale

Park Cheol-wan, Executive Director at Kumho Petrochemical

[Asia Economy Reporter Hwang Yoon-joo] Park Chan-gu, chairman of Kumho Petrochemical, and his nephew, executive director Park Cheol-wan, who is engaged in a management rights dispute, have additionally proposed shareholder proposals including the sale of treasury shares, listing of affiliates, and sale of non-operating assets.

On the 3rd, Park Cheol-wan's side launched a website containing "proposals to enhance corporate value" and disclosed these additional shareholder proposals. Previously, Park demanded the removal of Chairman Park and related parties and dividends of 11,000 KRW per common share and 11,100 KRW per preferred share, which is seven times the previous year.

There are three main shareholder value enhancement measures additionally proposed by Park. First is the cancellation of treasury shares. Park's side explained, "All treasury shares held for a long time should be canceled," adding, "If all treasury shares are canceled, there will be an earnings per share (EPS) increase effect, and the shareholding ratio of existing shareholders, including minority shareholders, will rise."

Second, they advocated for the listing of major affiliates such as Kumho P&B Chemicals, Kumho Mitsui Chemicals, and Kumho Polychem. Park's side stated, "We are not taking advantage of the good market opportunities due to the stock market boom," and "Listing these three major affiliates could secure at least 500 billion KRW in additional funds."

Next, from the perspective of strengthening finances, they urged the sale of non-operating assets. Park's side said, "There are large investments unrelated to the core business," and "By disposing of these assets, more than 200 billion KRW can be secured, which can be used as resources to strengthen existing businesses and promote new businesses."

The non-operating assets he pointed out include Asiana Airlines stocks (96.4 billion KRW), Daewoo Construction stocks (38.9 billion KRW), unlisted stocks (63.6 billion KRW), and other investments such as equity contributions (6.7 billion KRW).

Park emphasized again, "Now, when we have achieved the best operating performance since the company's founding due to the COVID-19 special situation, is the optimal time to promote innovation," adding, "As the largest individual shareholder and an executive of Kumho Petrochemical, I present these shareholder proposals with a sincere heart solely to increase corporate and shareholder value through careful consideration."