The long-suffering minority investors of SK Corporation today endured an 8% fall in the value of the company as the board of directors, yet again, ignored the interests of their shareholders.
The board set aside 143 billion won to bail-out another failed affiliate, SK Shipping. Ironically this contribution appears to replenish the money missing from SK Shipping due to an alleged slush fund currently under investigation by the Seoul prosecutor's office.
In addition the board agreed to dispose of SK Corporation's Treasury stock to a group of banks associated with SK Global, in an apparent attempt to support the convicted directors of SK Corporation. SK Corporation has yet to explain the 4.4 trillion won accounting fraud at SK Global or the disappearance of 200 billion won at SK Shipping.
Today's events underline the way in which shareholder assets are being channelled by the incumbent management without transparency or accountability and in blatant contradiction of shareholders expressed desires.
The provisions of the Korean Commercial Code give all shareholders a voice by means of the right to vote on the future of the company at the upcoming annual shareholders meeting. It is our belief that today's events again demonstrate why minority shareholders should vote in March to remove the incumbent board.
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