A Sign of Solid Control
Hansol Group chairman Cho Dong-gil will become an inside director at the group's two major affiliates.
Cho will be appointed as an inside director at the shareholders' meeting of Hansol Paper and Hansol Technics on March 24, the group said on March 3.
The two companies are major affiliates of Hansol Group with sales topping 1 trillion won each. Hansol Paper, the largest papermaker in Korea, logged 1.5 trillion won in sales in 2020. Hansol Technics, an electronics parts manufacturer acquired by Hansol Group in 1995, posted 1,194 billion won in sales last year.
Some analysts say that Cho has strengthened his control of the group. A proxy fight took place at Hansol Holdings in 2019 as minority shareholders demand a high shareholder return. The company was also exposed to the risk of falling victim to a hostile M&A attempt.
Cho's stake in the holding company was only 4.16 percent (1.6 million shares) shortly after Hansol Group changed into a holding company system. But it rose to 17.23 percent (7.23 million shares) in 2020. The stakes held by those with a special relationship with Cho, including the 7.93 percent (3.3 million shares) owned by the Hansol Cultural Foundation, exceed 30.26 percent (127.2 million shares). Analysts say that Cho has decided to come to the frontline of management as he has secured a large enough stake to defend his management rights.