Minor shareholders sue over capital cut

Hundreds of minor shareholders of five banks including Hanvit, Peace, Kwangju, Kyongnam and Cheju, which had decided to reduce capital, are preparing to bring a lawsuit against the government and the banks concerned, claiming damages and seeking compensation. The class-action suit by 650 persons is the largest of its kind in Korean judicial history. ¡°Due to the government¡¯s omission of duties and bankers¡¯ mismanagement, many minor shareholders have suffered heavy damages from capital cut, so we are going to bring a suit for damage compensation at the end of January,¡± the Citizens¡¯ Gathering for Action, which is preparing the suit, said Jan. 11.

Since the end of 2000, this organization has been receiving applications from claimants by telephone and Internet and now estimates the amount of damages on the basis of the reports submitted by the minor shareholders.

Park Jeong-Hun sunshade@donga.com