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The Korea Herald
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THE INVESTOR
March 28, 2024

Finance

Asset managers face flak for supporting Samsung’s merger

  • PUBLISHED :December 08, 2016 - 11:50
  • UPDATED :December 08, 2016 - 18:04
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[THE INVESTOR] South Korean asset management companies may face criticism from clients for supporting Samsung Group’s controversial merger of two units last year, industry watchers said on Dec. 8.

In an extraordinary shareholders meeting in mid-July last year, all asset managers in the country supported the combination of then-Samsung C&T and Cheil Industries. The merged entity was renamed Samsung C&T.




Defying strong opposition from minor and foreign investors, Samsung pressed ahead with the merger, which cleared the way for heir apparent Lee Jae-yong to control the nation’s top conglomerate during his father’s hospitalization. His father Lee Kun-hee has been in the hospital since May 2014 after suffering a heart attack.

According to sources, AMCs are concerned they may take a hit from allegations that the presidential office Cheong Wa Dae forced the National Pension Service to support the merger.

“AMCs may not be exempt from criticism should the NPS come under flak for making a wrongful decision due to outside pressure,” an industry source said.

The state pension operator’s support was deemed crucial for the merger since it held an 11.21 percent stake in then-Samsung C&T and a 4.84 percent stake in Cheil Industries.

(theinvestor@heraldcorp.com)

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