Taekwang Industrial Files Complaint Against Three Including Trusston CEOs for "Disrupting Management with False Information"
Police Complaint Filed Against Hwang Sung-taek, Lee Sung-won, and Others
“Repeated False Claims Regarding Management Council”
“Shareholder Rights Abuse... Harm to Company and Ordinary Shareholders”
Taekwang Industrial announced on September 14 that it has filed a police complaint against Trusston Asset Management CEOs Hwang Sung-taek and Lee Sung-won, along with one other individual, for defamation and obstruction of work. According to Taekwang Industrial, Trusston damaged the reputations of the company and its directors and interfered with normal management activities by sending shareholders’ letters containing false information.
According to Taekwang Industrial, on September 3, Trusston sent an open letter to the Taekwang Industrial board of directors and its board members, describing the Taekwang Group Management Council as a “phantom-like organization” that effectively controls the group’s management, and alleged that the Taekwang Industrial board merely endorses the council’s decisions.
Taekwang Industrial refuted these allegations, stating they are not factual. The company explained that the council for inter-affiliate discussions changed its name to the “Management Support Council” in August last year, and as a result, the previous management council no longer exists. Taekwang Industrial further clarified that the Management Support Council is merely a forum for consultation and synergy between affiliates and does not make management decisions on behalf of individual companies.
A Taekwang Industrial representative stated, “When Kim Giyu was chair of the Management Council and was overseeing group management, the council effectively served as a control tower. However, Trusston is distorting past circumstances as if they are the current reality.”
Taekwang Industrial further claimed that Trusston’s references to exercising rights to inspect and copy accounting books, filing shareholder derivative lawsuits, requesting to convene extraordinary shareholders’ meetings, and reporting for obstruction of work, all constitute forms of obstruction of work by pressuring the board members.
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A company official added, “Unsubstantiated claims and suspicions are repeatedly disrupting normal management decisions and investment activities. These go beyond the reasonable exercise of shareholder rights and are causing damage to the company and ordinary shareholders, so we have taken legal action.”
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