In a case brought by the U.S.-based hedge fund Mason Capital Management against the South Korean government through the Investor-State Dispute Settlement (ISDS) system, it has been ruled that the South Korean government must compensate it 43.8 billion won (US$31.97 million). The ruling has partially
Elliott Management, a U.S.-based private equity fund, criticized the South Korean government’s decision to file an appeal lawsuit against an international investment dispute decision, saying that “the rejection of the decision sends the wrong message that South Korea is tolerant of corruption.” The
Attention is focusing on Hyundai Motor Group’s reorganization plan. Hyundai Motor Co. and Kia developers are scheduled to be relocated to recently acquired autonomous driving startup 42dot, and Hyundai Mobis, a core subsidiary of the group, is planning to set up module and component production subsi
The 23rd trial regarding Samsung Electronics vice chairman Lee Jae-yong’s involvement in the Samsung C&T-Cheil Industries merger took place at the Seoul Central District Court on Nov. 25.There, a witness testified that Goldman Sachs proposed to provide consulting for Samsung regarding its response t
Hyundai Motor Group chairman Chung Eui-sun has begun a full-fledged restructuring of the group’s governance structure. It is pushing for the listing of Hyundai Engineering, the group's unlisted construction arm, as the first step towards reshaping its cross shareholding structure.The governance
U.S.-based hedge fund Whitebox Advisors LLC has publicly opposed LG Corp.’s spin-off plan immediately after the National Assembly passed Commercial Act and Monopoly Regulation and Fair Trade Act amendments.“The plan sacrifices minority shareholder return in order to resolve a family succession issue
Hyundai Motor Group is preparing a corporate governance reform as its complex governance structure needs to be better organized for its new chairman Chung Eui-sun’s stable control and succession. At present, the chairman owns 2.62 percent of Hyundai Motor Co., 1.74 percent of Kia Motors, 23.29 perce
The Korea Industry Alliance Forum recently simulated separate audit committee member appointment based on the so-called 3 percent rule in relation to 15 major companies and announced on Oct. 13 that a person recommended by a foreign hedge fund is likely to be appointed in 13 out of the 15.The 3 perc
The Moon Jae-in administration defined conglomerates, which represent a very large portion of the South Korean economy, as deep-rooted evils and has put pressure on them with a variety of regulations. However, it suddenly came up with ‘Korea New Deal’ projects after COVID-19 drove them to a precipic
Samsung Group allegedly won over media outlets in promoting the merger between Cheil Industries and Samsung C&T in 2015 with threats to stop giving ads if they carried negative stories about it.According to recent media reports, Samsung Group placed 3.6 billion won worth of ads on media outlets ahea
Despite the persistent COVID-19 crisis, an M&A boom appears to be returning to the global semiconductor industry.U.S. semiconductor company Analog Device (ADI), a leader in signal processing, will take over its rival Maxim Integrated Products for about US$21 billion, Reuters reported on July 13 (loc
The Seoul Southern District Prosecutor’s Office announced on June 29 that it decided on May 25 not to indict Elliott Management.According to the Financial Investment Services and Capital Markets Act, a shareholder with a shareholding of 5 percent or more must publicly disclose the shareholding statu
While the 21st National Assembly has not been launched yet, the ruling Democratic Party of Korea (DPK) is preparing to amend the Commercial Act to provide for multiple derivative actions and cumulative voting, signaling that it will introduce anti-corporate bills in earnest.The business community ex
As Chung Mong-koo, chairman of the Hyundai Motor Group stepped down as chairman of the board of directors, senior vice chairman Chung Eui-sun is expected to further solidify his position. Therefore, stronger winds of changes and reforms are expected to blow at the Hyundai Motor Group. But it remains
Elliott Management, an activist U.S. hedge fund, has reportedly sold off its entire stakes in Hyundai Motor Group companies as its attempt to challenge the group’s controlling family over its corporate governance failed.Elliott announced in April 2018 that it had acquired US$1 billion worth of stake
Hyundai Motor Group has recently elevated the status of investor relations (IR) units of its subsidiaries by putting them under the direct control of company presidents. It is part of its plans to improve the stock performance of the affiliates by expanding the power and responsibility of the IR uni
The amount of cash dividends paid by the top 10 business groups in South Korea surpassed 20 trillion won (US$17.62 billion) last year, hitting a record high. These groups strengthened their shareholder return policy in response to the introduction of a stewardship code by institutional investors and
The Korean business community is in shock as Hanjin Group chairman Cho Yang-ho lost his managerial control of Korean Air Lines Co. by failing to secure support for his reappointment as an inside director at a general shareholders’ meeting on March 27.Business leaders are surprised as their worst fea
The Korea Corporate Governance Service (KCGS), which provides advice regarding voting rights for the National Pension Service (NPS), took Hyundai Motor Group’s side, saying that Elliott Management Corp.’s outside director appointment-related proposal and excessive demand for dividends could hamper t
Hyundai Motor Group is striking back at U.S.-based activist fund Elliott Management Corp. which has been pressuring the Korean automotive group to change its governance structure and shareholder return policy.Market watchers say Hyundai Motor has a greater chance of winning a proxy contest with Elli