Kumho Petrochemical's Largest Individual Shareholder Park Cheol-wan Delegates Rights to Cha Partners

Park Cheol-wan, the largest individual shareholder of Kumho Petrochemical, announced on the 15th that he has delegated his rights to the activist fund Cha Partners Asset Management (hereinafter Cha Partners) to enhance shareholder value.

Park disclosed on the same day that a special relationship has been formed with Cha Partners as joint holders of Kumho Petrochemical shares. Park, the eldest son of the late Park Jung-gu, former chairman of Kumho Group, is the nephew of Park Chan-gu, chairman of Kumho Petrochemical Group, and as of this date, he is the largest individual shareholder holding 9.1% of Kumho Petrochemical shares.

Park delegated the shareholder proposal rights to Cha Partners, the joint holder, and Cha Partners explained that it has proposed the following agenda items for the upcoming regular shareholders' meeting scheduled for next month: ▲ amendment of the articles of incorporation regarding treasury stock cancellation ▲ cancellation of treasury stock ▲ appointment of outside directors as audit committee members.

In a statement released after the disclosure, Park said, "We recognized and reached a consensus with Cha Partners that Kumho Petrochemical’s un-cancelled treasury stock accounts for 18% of the total shares, and these treasury shares may infringe on the rights of minority shareholders and be used unfairly. Furthermore, the board of directors, lacking independence and unable to perform its role, has caused Kumho Petrochemical to be undervalued."

He added, "As the largest individual shareholder of Kumho Petrochemical, I have decided to delegate the necessary authority to Cha Partners to improve the company’s corporate governance, protect the rights of minority shareholders, and monitor and check the management. As a shareholder, I hope Cha Partners will continuously strive to improve Kumho Petrochemical’s corporate governance, enhance management transparency, and maximize shareholder value for all shareholders, including minority shareholders."