Ahead of the March shareholders' meeting season, domestic and international fund managers have embarked on shareholder activism against Samsung C&T, demanding an increase in share buybacks and dividends. Samsung C&T has retained Kim & Chang, Korea's largest law firm, while five activist funds have chosen Lin as their advisors, with Lin's lawyers, many of whom joined the firm after working at Kim & Chang, drawing attention.
 
Five of the funds that have launched activism against Samsung, including ANDA Asset Management, City of London Investment Management, and Whitebox Advisors, are advised by Lin. Among the firm's many experts, three of the key players – Hyun Su Do, Jong Sik Kim, and Milosz Zurkowski - are former Kim & Chang veterans, having worked in the firm's finance, M&A, FTC, and corporate teams.
 
As the activist funds have retained Lin to respond, it is speculated that Samsung C&T will face robust opposition. Tensions are rising ahead of the Annual General Meeting, as Samsung C&T has announced that it will put the activist funds’ proposals on the agenda and has hired four other advisory firms in addition to its legal counsel - Morrow Sodali Korea, KDM Mega Holdings, CG Trust, and Wis Company Works - to help it prepare for a voting rights battle.
 
Lin’s legal services embody the competitiveness of former Kim & Chang professionals who possess expertise and passion. Like the rings on a tree, expertise cannot be hastily built; it is only forged through practice and experience. Trust stems from the accumulation of experience and expertise, which is why domestic and international hedge funds have chosen Lin as a legal advisor capable of competing with Korea’s largest law firm, Kim & Chang.
 
Since 2021, shareholder activism activities by domestic and foreign activist funds have been increasing rapidly. The introduction of the Stewardship Code in 2016 and the revision of the Commercial Code in 2020 have had an impact, and in the first half of 2023, the number of companies targeted by shareholder activism in Korea ranked third after the United States and Japan.
 
Recently, as the government has announced the introduction of the “Corporate Value-Up Program” aimed at increasing the valuation of low PBR (Price-to-Book Ratio) listed companies, creating a consensus towards shareholder returns, it is anticipated that activist funds’ calls for improved governance structure and increased shareholder return will increase even more as we approach the March shareholder meeting season for domestic listed companies.
 
Lin’s Corporate Governance Dispute Team represents leading domestic companies, major shareholders, and domestic and international activist funds in various advisory and litigation matters related to hostile M&A, shareholder rights, corporate governance, and investor disputes. If you require professional advice on shareholder activism and shareholder rights-related matters, please contact the Corporate Governance Dispute Team at Lin (Tel. 02-3477-8695).
 
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