Activist Fund "Disclose KT&G and Philip Morris Contracts"... Court Dismisses Injunction Request

The court dismissed on the 25th the provisional injunction lawsuit filed by activist fund Flashlight Capital Partners (FCP) against KT&G, which sought to inspect and copy the minutes of the board of directors' meetings to understand the contract details with Philip Morris International (PMI).

KT&G announced that the Daejeon District Court dismissed the provisional injunction application filed by FCP last October. The reason for dismissal was stated as "the applicant's request is without merit."

However, regarding the accounting books and documents for which FCP had also filed the provisional injunction lawsuit requesting inspection along with the board minutes, inspection and copying were allowed only for some parts.

Earlier, FCP argued that KT&G's extension of the overseas sales contract with PMI from the original 3 years to 15 years in January last year required scrutiny of the contract's validity and risks. They requested inspection and copying of accounting books and documents related to the contract details, overseas business profitability, and consulting fee details executed since the fourth quarter of the year before last, as well as the board meeting minutes.

However, KT&G did not disclose detailed contract information citing confidentiality provisions of the contract.