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The Hidden Reasons Behind SK Chemicals Minority Shareholders’ Collective Action Against the National Pension Service and SK Chemicals

[비즈한국] An investigation by Bizhankook has confirmed that some minority shareholders, angered by the weak stock price of SK Chemicals285130, have begun full-scale collective action against the National Pension Service (NPS) and the company this month.

Minority shareholders believe that the stock’s downward trend has intensified because the NPS slashed its stake in SK Chemicals by more than half in just five months—from 10.13% at the end of last October to 4.57% as of March 31 this year.

Since the start of this month, minority shareholders have been demanding that the NPS and SK Chemicals provide a clear explanation for their actions. They are planning to file a request for information disclosure against the NPS this month and are considering filing a request for an audit by the Board of Audit and Inspection, as well as initiating administrative litigation. They also plan to expand the scope of their solidarity to include all minority shareholders.

SK Chemicals' stock price plummeted by more than 40% in just two months, falling from 467,000 won on February 3 this year to 274,500 won at closing on April 15.

The NPS stake in SK Chemicals was 10.13% as of October 30 last year, but after consistent selling, it dropped to 8.94% on January 8 this year and further to 4.57% by March 31.

According to financial information provider FnGuide, the NPS sold 461.8 billion won worth of SK Chemicals stock between January and early April this year. During the same period, the only large corporations where the NPS disposed of more shares in terms of value compared to SK Chemicals were Samsung Electronics005930 (1.1883 trillion won), Celltrion068270 (1.1332 trillion won), and LG Chem051910 (574 billion won).

However, minority shareholders of SK Chemicals are increasingly frustrated because there have been no other cases where the NPS reduced its stake to a similar extent, and the stock prices of those other firms have remained strong or stable.

A representative for the minority shareholders argued, "There is strong suspicion that the NPS violated its own principles of public interest and liquidity management by reducing its stake. Ultimately, we view the current stock price movement—which is completely different from that of SK Chemicals' subsidiary, SK Bioscience302440, which has been showing strength since its listing in March—as an excessive decline caused by the NPS's excessive selling."

Some minority shareholders are raising suspicions about whether there was some sort of agreement between the NPS and SK Chemicals regarding block deals (large-volume trading) of the stock.

The principle of public interest dictates that the NPS must manage its fund while considering the ripple effects on the domestic economy, while the principle of liquidity dictates that it must manage the disposal of invested assets in a way that minimizes shocks to the domestic financial market.

In response, a high-ranking official from the NPS explained in a phone call with Bizhankook, "Our corporation conducts rebalancing on the listed companies we invest in. We buy and sell stocks based on the judgment of our working-level staff for each case." He added, "While we understand the position of minority shareholders in certain companies, stock price formation is driven by a combination of complex factors. We operate the fund according to our fund management principles and do not exchange opinions with the companies we invest in."

Minority shareholders are also taking issue with the fact that SK Chemicals has been consistently passive in defending its stock price. In fact, it has been confirmed that the department in charge, the Investor Relations (IR) team, has been operating in an unstable manner for a considerable period, with even the team leader position left vacant, which has further fueled the anger of minority shareholders.

Minority shareholders claim that even after the stock price fluctuated following an episode of MBC's *Straight* on March 28 titled "Humidifier Disinfectants and SK," which directly spotlighted SK Chemicals, the company was extremely inadequate in its response, failing to offer any active clarification.

Furthermore, minority shareholders are pointing out that even as the stock price weakness persists, SK Chemicals is pushing ahead with granting stock options to employees, which they argue is exacerbating the decline. Stock options are a system where a company grants employees the right to purchase a certain amount of company stock at a fixed price.

One minority shareholder complained, "Ultimately, SK Chemicals is trying to offload the losses resulting from the gap between the market price and the issue price for new shares under the stock options onto general shareholders. This is a policy only for company employees and an act of deception against minority shareholders."

Regarding this, an SK Chemicals representative stated, "We cannot take any position on the fact that the NPS sold shares based on its own systematic judgment. We believe there are no negative factors regarding our stock price because our earnings and financial status are sound. Although the IR team leader position is currently vacant, we have not yet established a concrete plan to reorganize the IR team."