SK faces hurdle in listing units amid president's shareholder-friendly policy

SK Group is considering dropping a plan to spin off its lubricant-manufacturing unit, SK Enmove, from SK Innovation and make it a publicly traded company, as the move is feared to clash with President Lee Jae Myung’s policy to protect retail investors, according to industry officials Wednesday. Large companies in Korea's corporate world have often taken a core business unit and made it into a spin-off from the larger affiliate, then listing it separately to raise capital. The strategy, however, has been controversial as the share price of the corresponding larger affiliate often drops afterward, taking a toll on its shareholders. Lee has repeatedly warned against such practices, arguing that it has caused a longstanding discount on Korean stock market valuations. “Retail investors put their money into a company with a hope that its blue-chip subsidiary will ensure high returns,” Lee said during a June 3 presidential election campaign. “However, they end up investing in the wrong company when the subsidiary is carved out and listed separately. This is total nonsense.” SK InnovatWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times