SK Chairman To Attend Antitrust Hearing

SK Group Chairman Chey Tae-won himself will personally explain to South Korea’s antitrust watchdog his reasons why his 253.3 billion won ($214.4 million) stock purchase four years ago was legitimate, reported The Investor.

According to the Fair Trade Commission Dec. 12, the head of the nation’s third-largest conglomerate is scheduled to voluntarily appear before the antitrust regulator on Dec. 15. The 61-year-old tycoon is expected to deliver his defense over allegations that he illegally benefited and plundered corporate profits through the stock purchase.

In January 2017, SK, the holdings firm of SK Group, acquired 51 percent of LG Siltron, a silicon wafer manufacturer, for 620 billion won.

Three months later, SK acquired another 19.6 percent of LG Siltron, but stopped there. This allowed Chey — chairman and co-CEO of SK — to purchase the remaining 29.4 percent of LG Siltron shares at 253.3 billion won.

As a holding company, SK’s main revenue comes from dividends. It faces accusations that by letting Chey purchase the 29.4 percent, it deliberately gave up a business opportunity to receive more dividends and yielded it to the chairman.

SK claims that it didn’t purchase the 29.4 percent because it didn’t have to. The 70.6 percent, which is more than two-thirds of total shares, gives SK Inc. enough voting rights to pass a special resolution.