![Why did Taekwang Industrial, which has no stake in it, issue a paid-in capital increase of 400 billion won to Heungkuk Life Insurance?[심성미의 증시 돋보기] By Hankyung](https://i-invdn-com.investing.com/news/LYNXNPEB660A4_L.jpg "Why did Taekwang Industrial, which has no stake in it, issue a paid-in capital increase of 400 billion won to Heungkuk Life Insurance?[심성미의 증시 돋보기] By Hankyung")
©Reuters. Why did Taekwang Industrial, which has no stake in it, issue a paid-in capital increase of 400 billion won to Heungkuk Life Insurance?[심성미의 증시 돋보기]
The securities industry is noisy with the news that Taekwang Industrial will give Heungkuk Life Insurance a 400 billion won paid-in capital raise. Why did Taekwang Industrial, which does not even own a share of Heungkuk Life Insurance, want to participate in the capital increase of Heungkuk Life Insurance?
According to the industry, Taekwang Industrial will hold a board meeting on the 13th to vote on an agenda to participate in an approximately 400 billion won paid-up capital increase by way of third party allocation to Heungkuk Life Insurance. On the 8th of last month, Heungkuk Life Insurance threw the market into confusion when it refused and canceled the early redemption (call option) of new foreign currency equity securities worth $500 million (about 560 billion won) . The crisis was overcome with the issuance of repurchase agreements (RPs) for commercial banks, but it is a desperate measure that has come about in a situation where the ‘large shareholder’s liability theory’ is on the rise.
The majority shareholder of Taekwang Industrial and Heungkuk Life Insurance are the same. Lee Ho-jin is the former chairman of the Taekwang Group. Former Chairman Lee owns 56.3% stake in Heungkuk Life Insurance and owns 100% stake including friendly shares. Chairman Lee’s stake in Taekwang Industrial is 29.48%, or 54.53% when including family shares.
However, the problem is that Heungkuk Life Insurance is not a subsidiary of Taekwang Industrial. Only the majority shareholder is the same, but Taekwang Industrial does not own a single share of Heungkuk Life Insurance. And Taekwang Industrial is a listed company, not a non-listed one. The 400 billion won burden borne by Heungkuk Life Insurance, which is in a cash crunch, in the sense of “pouring water into the bottomless basin” means that the shareholders of Taekwang Industrial have to bear the burden. The minority shareholder ratio of Taekwang Industrial reaches 99.66%.
The shareholders revolted. Truston Asset Management, which owns a 5.80% stake in Taekwang Industry, released a statement on the same day and said, “If Taekwang Industry participates in the paid capital increase of Heungkuk Life Insurance, this is a decision of sacrifice the rights of minority shareholders of Taekwang Industry for the sake of major shareholders. disclose,” he said.
“Heungkuk Life’s recent liquidity risk is a problem for Heungkuk Life shareholders to resolve,” he said. “The idea is to only share the crisis situation with the minority shareholders while the majority shareholder monopolizes the performance,” she sharply criticized. He doesn’t seem to be wrong.
In response to the Korea Exchange’s request to disclose whether or not it participates in the capital increase, Taekwang Industrial said on the afternoon of that day, “We are reviewing the participation in the capital increase of Heungkuk Life Insurance Co., Ltd., but nothing has been confirmed yet.” We will announce it again in the near future.”
Ahead of the board meeting on the 13th, the market’s attention is also attracted by the photos of Taekwang Industrial’s external directors. Excluding two internal administrators, there are a total of three external administrators. Daegeun Kim, an associate professor of mechanical engineering at Dankook University, accountant Jeongin Na, and Wonjun Choi, an associate professor of mechanical engineering at Korea University. I am interested in whether they can actually vote to participate in the capital increase of Heungkuk Life Insurance and what reasons they can present if they decide to participate in the capital increase of Heungkuk Life Insurance without shares.
Reporter Sim Seong-mi [email protected]
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