Seoul Court Rules Koryozing's Voting Rights Restriction on Young Poong Illegal, Orders 100M Won Compensation

According to Herald Business, on July 10, Seoul Central District Court ruled that Koryozing's restriction of Young Poong's voting rights at an extraordinary shareholders' meeting in January 2025 was illegal. The court found that Park Ki-deok, Koryozing's chief executive officer and meeting chair, breached his duty of care by limiting Young Poong's voting rights on 25.42% of shares without legal grounds. The court ordered Park to pay Young Poong 100 million won in damages plus interest. The court determined that SMC, an Australian subsidiary, does not qualify as a joint stock company under South Korean law and therefore cannot trigger voting rights restrictions under mutual shareholding rules. Koryozing stated the ruling does not affect its current governance structure, noting that its March 2025 shareholders' meeting was ruled lawful by the courts.
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