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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] The National Pension Service (NPS) of South Korea has changed its purpose for holding shares in Kakao from 'general investment' to 'simple investment,' which indicates that it will not engage in management rights.
On October 30, the NPS disclosed this change in its 'Report on Large Holdings of Stocks and Other Securities' to the securities industry. The purposes for shareholding by the NPS are categorized into three types: simple investment, general investment, and management participation, depending on the level of shareholder engagement.
With general investment, the NPS can actively exercise its shareholder rights, such as opposing the appointment of directors, proposing dividends, or demanding the dismissal of executives involved in illegal activities. In contrast, simple investment means that the NPS will not exert influence over management rights.
Previously, on November 1 of last year, the NPS had switched its purpose for holding shares in Kakao and Kakao Pay from 'simple investment' to 'general investment' amid the company's involvement in the stock manipulation scandal related to SM Entertainment. This change back to simple investment comes approximately one year later.
Additionally, the NPS announced a reduction in its Kakao holdings. It held 24,075,943 shares (5.42%) of Kakao but reduced this to 23,756,974 shares (5.36%) as of September 26.
The NPS has been consistently reducing its stake in Kakao. As of the end of March 2022, it owned 28,339,256 shares (6.36%) but sold 4,263,313 shares last year.
Kakao's stock price peaked at 173,000 won around June 2021 but has since declined, closing at 37,350 won on the latest trading day.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
