Lawsuit Filed against KT&G Directors for Alleged Losses
According to South Korean media outlet Newssis, current and former directors of KT&G, a South Korean tobacco company, have been sued by activist fund Flashlight Capital Partners (FCP). It is alleged that their actions have resulted in the company incurring a loss of over 1 trillion Korean won (748 million US dollars).
KT&G’s position is that the contribution of treasury stocks is a legitimate procedure for the company's social contribution activities and employee welfare. Earlier, FCP sent a request to the Chairman of KT&G's Audit Committee to file a director's liability lawsuit, the contents of which are as follows. The investigation targets 21 former and current internal and external directors, including the current KT&G President, Baek Bok-in. If KT&G does not file a lawsuit against the directors within 30 days of receiving the request, FCP can initiate a shareholder representative lawsuit. FCP claims that since 2001, Baek Bok-in and other members of the board of directors have donated 10 million KT&G treasury stocks to foundations and funds, rather than increasing shareholder value through cancellation and sale, causing damage to the company. In response, KT&G stated in a statement, "In order to fulfill corporate social responsibility, the company donated a portion of treasury stocks for the improvement of public welfare and employee benefits.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
