Foreign Investor Sovereign Asset Management Changes Stance at SK Corp.
A Korea Times article suggests that Sovereign Asset Management is preparing to dispose of its stake in South Korea'?s largest oil refinery SK Corp.
Interestingly, the Dubai-based fund modified the purpose of its shareholding in SK Corp. to "simple investment' from "management participation." In Korea, investors with over a 5% stakeholdership in a firm must designate the purrpose of that investment.
Sovereign did not disclose the reason behind the reclassification of its investment purchase in SK Corp.
Sovereign's change in stance came 10 days after Seoul High Court suspended SK Group chairman Chey Tae-won'?s jail term for his role in a $1.5 billion accounting fraud for five years although it upheld a three-year sentence on June 10.
Last year, Sovereign had campaigned vigorously to oust Chey on grounds of corruption , but SK Group owner survived the ouster attempts.
On another level, this indicates that despite a huge increase in foreign investment in Korean firms, Korea's family owner-management model is still firmly entrenched.
Interestingly, the Dubai-based fund modified the purpose of its shareholding in SK Corp. to "simple investment' from "management participation." In Korea, investors with over a 5% stakeholdership in a firm must designate the purrpose of that investment.
Sovereign did not disclose the reason behind the reclassification of its investment purchase in SK Corp.
Sovereign's change in stance came 10 days after Seoul High Court suspended SK Group chairman Chey Tae-won'?s jail term for his role in a $1.5 billion accounting fraud for five years although it upheld a three-year sentence on June 10.
Last year, Sovereign had campaigned vigorously to oust Chey on grounds of corruption , but SK Group owner survived the ouster attempts.
On another level, this indicates that despite a huge increase in foreign investment in Korean firms, Korea's family owner-management model is still firmly entrenched.
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