Korea govt fund rejects SK move in warning to chaebol

Seoul

AS Samsung Group's founding family prepares for a proxy fight next month, South Korea signalled it will defy dynasties that seek to tighten their grip over their businesses at the expense of minority shareholders.

The welfare ministry's National Pension Service, the country's largest investor, on Wednesday made the rare move of rejecting a proposed merger within a conglomerate by objecting to the combination of two SK Group units on concern the deal isn't in the best interest of all shareholders. The fund opposed only about 9 per cent of proposals put forward by Korean companies last year.