Minority shareholders of Com2uS are gathering to make their voices heard. Their goal is to secure a 3% stake so that Com2uS can prioritize maximizing shareholder value in its management.
The Com2uS minority shareholder coalition, called the "Com2uS Shareholders Action Group" (hereafter Shareholders Action Group), announced on the 29th that it has secured a total of 260,000 shares, representing a 2% stake, just ten days after its establishment.
As a measure to correct the undervalued corporate value of Com2uS, they proposed ▲the complete cancellation of all treasury shares currently held ▲the purchase and cancellation of treasury shares using profits from SM Entertainment stock gains. The stock price of Com2uS has fallen to about half over the past year.
Com2uS holds a 4.2% stake in SM Entertainment and fully participated in the SM tender offer conducted by Kakao and Kakao Entertainment on the 27th.
The Shareholders Action Group also insisted that any abnormal transactions with the parent company, Com2uS Holdings, must be thoroughly investigated. They explained that it is necessary to review from the perspective of the Fair Trade Act whether Com2uS Holdings paid a fair price for the IP secured by Com2uS and whether the profit-sharing structure for development and publishing is appropriate.
The Shareholders Action Group raised concerns about Chairman Song Byung-jun's salary. Despite Com2uS turning to a deficit last year, they argue that Chairman Song's annual salary of 2.7 billion KRW is excessive.
In contrast, Kim Chang-han, CEO of competitor Krafton, returned his performance bonus due to poor stock performance, and Chairman Jang Byung-gyu invested 20 billion KRW of personal funds to purchase shares. Meanwhile, Chairman Song is criticized for receiving one of the highest salaries in the gaming industry without efforts to restore shareholder value.
The Shareholders Action Group plans to ensure that Com2uS prioritizes maximizing shareholder value as the core of its management by appointing new auditors and outside directors once they gather a 3% stake. They also stated their intention to work towards normalizing Com2uS management promptly through alliances with activist funds and others.
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