Why has Sovereign Asset Management has called for new leadership at SK Corp.?
The existing leadership has already demonstrated its abilities. SK Corp. is in crisis due to mismanagement and accounting irregularities at SK Securities, SK Global, and SK Shipping. The scale of the losses at SK Global is in the billions, and what’s more shocking is that no one has yet given a full accounting of where the money went. This is a key criticism currently being leveled by foreign creditor banks. Three key executives at SK Corp. have received criminal convictions for breaches of fiduciary responsibility. Neither shareholders nor banks can have any confidence in SK Corp. until all convicted directors have been removed and a new, ethical corporate culture has been instilled in SK Corp. Q: Sovereign has been against a plan to bail out SK Global. What are the biggest problems of the bailout plan? A: Until we know where the billions of dollars missing from SK Global have gone, it would be foolhardy to assume that the leaks have been plugged. Proposals to simply pour more money i
