Taekwang "Former Chairman Lee Hojin's Management Activities Are Excessive... Not in Return Preparation Stage"

Truston Insists "Former Chairman Lee Must Officially Return"

Truston Asset Management, the second largest shareholder of Taekwang Industrial, has pushed for the return of former Taekwang Group Chairman Lee Hojin to management, while Taekwang Industrial stated that it is difficult for the former chairman to carry out management activities.

On the 20th, Taekwang Industrial said, "We understand Truston's position hoping to appoint the former chairman as an inside director, but it is not desirable to unilaterally convene a shareholders' meeting and appoint him as a director without considering the former chairman's will and health condition."

Truston holds a 6.09% stake in Taekwang Industrial and officially requested Taekwang Industrial to hold an extraordinary general meeting to appoint the former chairman as a registered executive through an open shareholder letter on the same day. According to Taekwang Industrial, Truston requested the Taekwang Industrial board to convene an extraordinary shareholders' meeting to appoint the former chairman as an inside director on the 12th.

Taekwang Industrial explained, "The former chairman has been preparing to return to management since his reinstatement in August 2023, but medical staff recommended that it is difficult for him to perform management activities as a full-time executive due to health reasons," adding, "Therefore, since October last year, the former chairman has been serving as a non-executive advisor to Taekwang Industrial, providing advisory roles only in areas requiring the major shareholder's role and judgment, such as securing growth engines and entering new businesses."

Regarding the timing of the former chairman's return to management, the company added, "Currently, there is no specific schedule set for preparation," and "We will review it considering the improvement of his health condition."

Meanwhile, Lee Sungwon, head of Truston ESG Asset Management Division, said earlier, "At last year's shareholders' meeting, we appointed an independent outside director recommended by minority shareholders and have since worked with the company’s management to enhance corporate value, but recently all communication with Taekwang has been cut off," adding, "We judged that the prerequisite for normalizing Taekwang Industrial's management and resolving the undervaluation of its stock is for the former chairman, who is the largest shareholder and exercises substantial influence, to officially return as a registered executive," explaining the background for requesting the shareholders' meeting.