The Minute to Read (Weekend) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: May 27-31.
Seoul high court orders SK Group Chairman to pay $1bn to his wife
SK Group Chairman Chey Tae-won has been ordered to pay Roh So-young, director of the director of Art Center Nabi, 1.38 trillion won (about $1.03 billion) in property division and 2 billion won (about $145,296) in alimony, following their divorce. The Seoul High Court Family Division 2, presided over by Judge Kim, delivered this verdict in their second divorce case trial.
This ruling marks a significant increase from the 665 billion won (about $48.14 million) in property division and 100 million won (about $72,406) in alimony decided in the first trial in December 2022. Additionally, the court ruled that the shares of SK Inc, previously excluded from the division in the first trial, should be included, recognizing Roh’s contributory share. This case now holds the record for the largest property division in a divorce in South Korea.
Outside investors of Samsung Electronics opt to sell stocks at loss
Samsung Electronics shares have fallen below the average purchase price for foreign investors over the past six months, leading to significant losses. Since November last year, foreigners have bought over 12 trillion won (about $8.69 billion) shares, but they have turned into sellers this month.
The securities industry notes that many foreign investors who bought Samsung Electronics shares in the last six months are selling their stocks at a loss. Without a clear buyer group for Samsung Electronics shares, a widespread sell-off by foreign investors could trigger a vicious cycle, potentially driving the stock price even lower.
UAE President meets South Korean business leaders to discuss economic cooperation
United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan met with 20 heads of major South Korean conglomerates, including Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, and Hyundai Motor Group Chairman Chung Eui-sun, during his visit to South Korea on the 28th and 29th. The discussions focused on economic cooperation, with business circles anticipating collaborations in the nuclear power, defense, and construction sectors with the UAE.
Samsung Electronics union announces ‘first-ever strike’
The National Samsung Electronics Union, the largest union at Samsung Electronics, declared its first-ever strike on May. 29., marking the first strike in the company’s history since its founding in 1969. The labor-management council, a meeting between Samsung Electronics’ management and employee representatives, agreed to a 5.1%wage increase earlier this year, but the union is demanding a higher wage increase and an additional day of paid vacation. The National Samsung Electronics Union is the largest of Samsung Electronics’ five unions, with more than 28,000 members. It accounts for about 20% of Samsung Electronics’ 120,000 employees. The overwhelming majority of its members work in Samsung Electronics’ DS (semiconductor division). Last year, the average wage of Samsung Electronics employees (excluding registered directors) was 120 million won (about $86,855), placing them in the top 4% of domestic employees.
S. Korean No.1 travel agency Hanatour Service initiates sale process
The process of selling Hanatour Service, the top travel agency in South Korea, has started. In a public statement on May. 27., the company stated, “As confirmed by our largest shareholder, Harmonia No. 1 Limited Company, the travel market has recovered, and the company’s performance has improved, so we are considering various strategic options, including the sale of the stake.” They selected Citigroup Global Markets as the lead manager for the sale. According to industry sources, the stack amount to be sold is approximately 27%. Hanatour Service said, “We will decide further details after the talks between IMM Private Equity (PE) and the second largest shareholder.”
Trainee soldier dies during training exercise: Overexertion suspected
A trainee soldier from the 12th Infantry Division in Inje, Gangwon, died on May. 25. after collapsing during an irregular training exercise. Despite being transferred to a hospital, he passed away just nine days after joining the division. Reports indicate that he showed symptoms of rhabdomyolysis, a condition caused by muscle necrosis due to overexertion. There are also suspicions that his gear was weighted with books during a pack drill to increase its load. The Army has referred the case to the Gangwon Provincial Police Agency. Under the amended Military Court Act, the military must transfer cases of soldiers’ deaths to civilian authorities once an autopsy or examination identifies a suspected crime as the cause of death.
ADOR CEO Min Hee-jin retains position amid board reshuffle
The Seoul Central District Court has accepted ADOR CEO Min Hee-jin’s request for a preliminary injunction to block HYBE from voting at the extraordinary general meeting of shareholders. As a result, Min will be able to maintain her position, but she will be isolated as all other board members are HYBE executives.
ADOR, the agency for NewJeans, is a label in which HYBE holds an 80% stake. HYBE, citing “suspicions of a management takeover,” has been pushing to replace Min and other members of the ADOR management team. However, due to the latest court ruling, HYBE can only replace the current board of directors, excluding Min. At the extraordinary shareholders’ meeting on May. 31, Vice President Shin and Director Kim, who are reportedly aligned with Min Hee-jin, were dismissed, and three HYBE-nominated candidates were appointed as new directors, giving HYBE control over the ADOR board of directors.
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