'2nd Largest Shareholder' CEO Kim Gisu's Request Partially Accepted
Only 3 Items Cited…Court Says "Request Scope Excessive"
Kim Ki-soo, CEO of Presto Investment Advisory and the 'second largest shareholder' of Daol Investment & Securities, had his application to inspect accounting books partially approved by the court.
Daol Investment & Securities announced on the 20th that the Seoul Southern District Court on the 16th accepted three items in the provisional injunction lawsuit filed by Kim Ki-soo and his wife Choi Soon-ja against Daol Investment & Securities for the inspection and copying of accounting books.
In November of last year, Kim Ki-soo applied for a provisional injunction to inspect and copy the accounting books of Daol Investment & Securities through the Seoul Southern District Court. Initially, 16 items were requested, but 5 items were voluntarily withdrawn, and ultimately only 3 were approved.
The approved items include △documents related to loans and payment guarantees at the investment decision stage for sites where bad debts occurred in real estate project financing (PF) △documents related to loan claims and private bonds that failed refinancing in real estate PF △documents related to entertainment expenses and welfare expenses.
The court judged that the reasons claimed by the second largest shareholder for the need to inspect and copy were somewhat abstract and vague suspicions, and based on the materials submitted so far, it was difficult to find circumstances that would suggest the company’s actions lacked managerial necessity or rationality. Furthermore, the court noted that the scope of the request for inspection and copying of accounting books was excessively broad, comprehensive, and exploratory in nature, and it was difficult to conclude that all reasons for the request were substantially relevant, citing these as grounds for dismissal of other requests.
Additionally, the court permitted Kim Ki-soo to inspect and copy the minutes of the board of directors’ meetings. However, the remaining applications were dismissed due to lack of grounds.
Kim Ki-soo is allowed to inspect and copy the relevant materials at Daol Investment & Securities’ headquarters during business hours, accompanied by lawyers, certified public accountants, and assistants.
In this regard, Daol Investment & Securities stated, "We plan to thoroughly prepare the materials related to the three items approved by the court and provide them to the second largest shareholder."
Kim Ki-soo, the second largest shareholder of Daol Investment & Securities, made a large-scale purchase of shares in May of last year. Subsequently, in September, he changed the purpose of holding the shares from 'general investment' to 'management influence,' indicating a management rights dispute. Including special related parties, Kim Ki-soo’s group holds 14.34% of Daol Investment & Securities shares, second only to the largest shareholder, Chairman Lee Byung-chul of Daol Financial Group, who holds 25.20%.
Meanwhile, the Financial Supervisory Service has been investigating since November the suspicions raised during Kim Ki-soo’s share acquisition process of Daol Investment & Securities. There are allegations that shares were intentionally divided and purchased through family members to evade the authorities’ suitability screening for major shareholders during the acquisition process.
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