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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] A minority shareholder platform, ACT, said on June 10 that it has filed for a court injunction against Samsung Electronics to gain access to the company’s shareholder registry.
ACT plans to secure the registry through the legal action and send mail to at least 10,000 shareholders to initiate the exercise of shareholder rights regarding a proposed 10-year incentive plan tied to a percentage of operating profit. The platform currently has 14,721 Samsung Electronics shareholders participating, representing a combined stake worth approximately 1.6 trillion won.
ACT stated that it resorted to legal action after Samsung Electronics allegedly failed to respond to its requests to inspect the shareholder registry. The group said it first requested access on May 20 and followed up with two formal email requests on June 3 and June 5, but has yet to receive a response.
“The company is clearly disregarding minority shareholders, the true owners of the business,” ACT said, adding that it moved swiftly to legal action after its statutory right to access the registry—required to be available during business hours under commercial law—was infringed.
ACT has previously raised concerns that a special performance bonus agreement reached between Samsung Electronics and its labor union could undermine shareholder value. The group emphasized that the lawsuit is not merely about obtaining the shareholder registry but also marks the starting point of a broader campaign to require shareholder approval for such incentive schemes.
Samsung Electronics recently introduced a special performance bonus for its semiconductor division, funded at 10.5% of operating profit and to be paid in treasury shares. The agreement is reportedly valid for 10 years, provided minimum operating profit thresholds are met, and would require the company to acquire a substantial volume of treasury stock over that period.
ACT noted that under revised commercial law set to take effect in 2026, treasury share transactions for employee compensation purposes must be approved by shareholders and renewed annually at general meetings.
However, the group also acknowledged concerns that the new law may not apply retroactively to agreements already concluded without shareholder consent.
The government is reportedly reviewing measures to mandate shareholder approval for profit-linked compensation schemes. Lee Jae-myung recently warned that social pressure to allocate a portion of operating profits could deter foreign investment, suggesting that such demands may pose a burden for global companies considering investments in South Korea.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
