Shinyonggu, CEO of Korea Technology, "Prioritizing Shareholder Value Enhancement... Considering Simplified Merger of Subsidiaries"

[Asia Economy Reporter Jang Hyowon] Korea Technology, a KOSDAQ-listed company (CEO Shin Yonggu), is set to review a simplified merger with Daewoo Shipbuilding & Marine Engineering Construction (Chairman Kim Yongbin).

Korea Technology announced on the 8th that it is "currently reviewing" the simplified merger with Daewoo Shipbuilding & Marine Engineering Construction in response to shareholders' demands who wish to pursue the merger.

CEO Shin Yonggu stated, "In response to shareholders' requests, we are carefully examining whether to proceed with a simplified merger between Korea Technology and Daewoo Shipbuilding & Marine Engineering Construction," adding, "The decision will be made considering social responsibility, governance improvement, and shareholders' interests."

Shinyonggu, CEO of Korea Technology.

He particularly noted, "Given that Daewoo Shipbuilding & Marine Engineering Construction recorded approximately 43% sales growth and 612% operating profit growth last year, we expect significant synergy effects," but also said, "We are conducting comprehensive risk analysis and simulations for all potential risks arising from the merger and are exercising caution from the early stages of the simplified merger review."

The reason shareholders are demanding the simplified merger of the two companies is that if their capital and technology are fully combined, profitability can be improved through increased new orders, and it is expected to be more advantageous in projects such as offshore wind power plant development and renewable energy-related construction orders.

In fact, following the 24th regular shareholders' meeting held on the 30th of last month, shareholders demanding a simplified merger with the subsidiary Daewoo Shipbuilding & Marine Engineering Construction voiced strong opinions, prompting the company to explain that it would "carefully review the matter."

A company official stated, "Korea Technology has already established an ESG (Environmental Protection, Social Contribution, Governance) Management Committee to promote sustainable growth and enhance shareholder value," and added, "The decision on this simplified merger review will be made after strict verification by ESG committee members, including Chairman Moon Gangbae."

Meanwhile, Korea Technology successfully incorporated Daewoo Shipbuilding & Marine Engineering Construction as an almost 100% subsidiary by acquiring all remaining shares related to Daewoo Shipbuilding & Marine Engineering Construction in December last year. Currently, Korea Technology holds 100% of Korea Investment Bank's shares. Korea Investment Bank is the largest shareholder of Daewoo Shipbuilding & Marine Engineering Construction, holding 89.51% of its shares, and the remaining shares are also held by Korea Technology and its affiliates, totaling 99.43% when combined.