Rescue Plans for SK Global Hits a Snag

SK Corporation held their directors` meeting yesterday at the company‘s headquarters in Seorin-dong, Jongno-gu, Seoul, to discuss SK Global’s rescue measures, including a debt-equity swap of 850 billion won worth of trade receivables. The meeting ended in the late afternoon, but the group failed to reach any agreements.

SK Chairman Chey Tae-won, who was sentenced to three years in prison last week and SK Group Chairman Son Kil-seung were not present at the meeting. Kim Chang-keun, the firm‘s president, participated in the meeting but could not exercise his voting right since SK’s investors, Hermes Asset Management filed and won a petition at the Seoul Prosecutors’ Office to stop certain board members of the firm from voting.

According to the court ruling, Hwang Doo-yeol, vice-president of SK Corp. and Yoo Jeong-jun, executive director, attended the drawn out meeting as internal directors along with five external directors: Bak Heung-soo, professor from Yonsei University, Kim Jung-hwan, professor from Korea University of Foreign Studies (HUFS), two lawyers Han Young-seok and Ha Juk-bong, and an auditor Bak Ho-seo. The meeting mainly focused on rescue packages for SK Global.

Chances for SK Global‘s redemption will diminish if the directors, present at the meeting, do not approve or turn down the bailout plan during the day, because in that case, the MOU, signed by the major creditor bank, Hana, and SK Group in an effort to save SK Global, will become null and void.

Joong-Hyun Park sanjuck@donga.com