The Korea Corporate Governance Forum made an opinion that it opposes the listing of LG and Doosan Gr..

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The Korea Corporate Governance Forum made an opinion that it opposes the listing of LG and Doosan Gr..

Chairman Lee Nam-woo said, “We should not sit on the sidelines of the new outflow of national wealth.”

The Korea Corporate Governance Forum made an opinion that it opposes the listing of LG and Doosan Gr..
Lee Nam-woo, chairman of the Korea Corporate Governance Forum, greets at the 36th seminar of the Korea Corporate Governance Forum held at the IFC The Forum in Yeouido, Seoul, in July under the theme of “Problems of the Divided Merger System of Listed Companies as Doosan Group Case.” [Yonhap News]

The Korea Corporate Governance Forum made an opinion that it opposes the listing of LG and Doosan Group’s overseas subsidiaries, calling them a “new outflow of national wealth.”

On the 23rd, Lee Nam-woo, chairman of the Korea Corporate Governance Forum, said, “LG, Doosan, and Hyundai Motor, the representatives of the Korean business community, have listed or are currently pursuing attractive overseas production subsidiaries since the fourth quarter of last year,” criticizing, “From the perspective of shareholders of domestic parent companies, it is a ‘value destruction’ in which corporate values are flowing out.”

Turbine maker Doosan Skoda Power, a subsidiary of Doosan Energy, is recently seeking an initial public offering (IPO) on the Prague Stock Exchange in the Czech Republic.

LG Electronics has submitted related documents to the Securities and Exchange Commission of India for the local IPO of its Indian subsidiary, while Hyundai Motor has completed listing its Indian subsidiary.

Chairman Lee said, “In the past, LG Electronics has given D credits to its value-up plan, but due to the impact of the IPO, we will downgrade the credits and give F credits.”

“This phenomenon occurs as we abandon investor protection and cling to the issue of succession of controlling shareholders rather than enhancing corporate value,” he said. “The stock prices of LG Electronics and Hyundai Motor, which have continued to weaken recently, prove market concerns.”

Chairman Hi pointed out, “I would like to ask four outside directors, Lee Sang-gu, Kang Soo-jin, Ryu Choong-ryul, and Seo Seung-woo, whether the board of directors of LG Electronics has decided without paying attention to the old family and management,” adding, “We will again sympathize with the need to revise the commercial law to protect investors.”

“Hyundai Motor should keep its promise to use some of the funds introduced through the IPO of its Indian subsidiary to return shareholders,” he said. “Hyundai Motor’s board must make a promise to shareholders in the first half of the year.”

Regarding Doosan, he said, “The board of directors of Doosan Efficiency will be briefed on the Czech listing,” adding, “In this case, we recommend that four outside directors, Lee Joon-ho, Lee Eun-hyung, Choi Tae-hyun, and Lee Eun-hang, objectively judge whether the overseas listing is damaging to Doosan Efficiency’s general shareholders.”

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