Meritz Asset vows to play active role in companies in its portfolio

Kang Sung-boo, chief executive officer of KCGI [Source : KCGI]

Meritz Asset Management will focus on maximizing returns through active shareholder engagement activities in companies under its investment portfolio, Kang Sung-boo, chief executive officer of Korea Corporate Governance Improvement (KCGI) told Maeil Business Newspaper on Tuesday.

Seoul-based KCGI became the new owner of the asset management firm when it signed a contract to acquire Meritz Asset Management from Meritz Financial Group Inc. on Jan. 6. Meritz Asset Management is a mid-sized Korean asset management company with 3 trillion won of assets under management.

Kang earned fame as a leading activist investor in Korea when he fought against the owners of Hanjin Group, demanding the airline conglomerate improve its financials through sales of non-core assets. He said that he will employ the same management strategy for Meritz Asset Management.

He also heralded shareholder engagement activities for Osstem Implant, the world’s No. 1 dental implant provider in terms of sales. KCGI holds a 6.57 percent stake in Osstem Implant. He said Osstem Implant is undervalued compared with overseas competitors and blamed this on corporate governance. The vulnerability of its governance structure is characterized by a large-scale embezzlement case by the company’s finance team head, who had only been in the company for four years.

The establishment of governance-related regulations and systems prevents foul play and is reasonable not only for general shareholders but also for major shareholders, Kang said.