SK Corp Chairman Tightens Grip on Korea's Number 5 Industrial Group

SK Corp. Chairman Chey Taewon has tightened his grip on the company, Korea’s biggest refiner and flagship of the nation’s No. 5 industrial group.

SK C&C Co., an information technology unit of SK Group, said it bought a 0.86 percent stake in Seoul-based SK Corp., making it the refiner’s second-biggest shareholder.

Chey, who is fighting attempts by Monaco-based fund Sovereign Asset Management Ltd. to oust him, owns 44.5 percent of SK C&C.

Sovereign wants to eject Chey after he was convicted last year of fraud at an affiliate that SK Corp. then bailed out. Sovereign says SK Corp., founded by Chey’s uncle four decades ago, is undervalued because of poor corporate governance, including putting affiliates before those of shareholders.

The purchase will raise privately-held SK C&C’s stake in SK Corp. to 9.4 percent from 8.55 percent, Ko said.

Chey’s direct holding in SK Corp. is 0.6 percent, according to stock exchange data

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