Samsung SDI's 2 trillion won capital increase is expected to pass the Financial Supervisory Service (FSS) review earlier than initially anticipated. For a listed company to carry out a capital increase, it must submit a securities report to the financial authorities and undergo a review for up to 10 trading days. However, it is common for the FSS to fully utilize this period due to a backlog of documents. Considering the date Samsung SDI submitted its securities report, the review results will likely be announced around the 28th of this month. So far, the FSS has viewed their capital increase positively, suggesting a high likelihood of approval before that date.
On the 19th, Lee Bok-hyun, the chief of the Financial Supervisory Service, held a meeting with journalists at the FSS headquarters in Yeouido, Seoul, and noted, "Lee Jae-yong, chairman of Samsung Electronics, is showing leadership related to the Samsung Group initiative (new plan), and the authorities will support and assist this effort."
He continued, "It is encouraging that leading companies in our country are investing in ways that the market can agree with," adding, "If the information that investors need to know is sufficiently documented in the securities report, it should be acted upon as quickly as possible so that effects can occur within a few days."
This follows Samsung SDI's announcement on the 14th that it would proceed with a 2 trillion won capital increase. Samsung SDI stated that of this amount, 1.5 trillion won would be used to acquire securities from other companies, while the remaining 500 billion won would be allocated for facility funding. Because it is moving forward with a capital increase in the trillion won range, this case has been selected as the FSS's top priority for capital increase reviews.
He expressed, "Not only is the secondary battery business being analyzed, but various major industries are also under review," and added, "From this perspective, we view Samsung SDI's investment positively."
However, he stated that the FSS is not the institution that approves capital increases for listed companies. This means that it does not assess the investment suitability of corporations based on whether investment risks are adequately documented in the securities report. He remarked, "It is a significant misunderstanding that the FSS exercises the authority to approve capital increases themselves," indicating, "We will help ensure rapid funding can be secured once market uncertainties are resolved through swift reviews."
He also mentioned that there must be accompanying improvements in corporate governance. He stated, "For capital increases like those of Samsung SDI to be possible, advancements in corporate governance must go hand in hand," and explained, "There is data suggesting that the more actively corporations reinforce the rights of common shareholders and focus on shareholder benefits and returns, the higher corporate value rises."
He remarked that it is undesirable for the chairman, who is facing trial for involvement in the merger between Samsung C&T and Cheil Industries and for accounting fraud at Samsung Biologics, to reach the Supreme Court. The chairman has been acquitted in both the first and second trials. He is the prosecutor who indicted the chairman during his tenure as head of the Economic Crimes Division at the Seoul Central District Prosecutors' Office.
He expressed, "Rather than addressing punishment issues at the Supreme Court, it would be preferable to move toward enhancing shareholder value as a policy issue," adding, "In that sense, I hope there will be no approaches such as imprisoning anyone."