By Kim Yoo-chul
Staff Reporter
Shares of Hankook Cosmetics surged in recent days after its main shareholder clarified its stance to participate in management of the local cosmetics company.
Shares soared 14.91 percent to end 3,815 won on the nation's main bourse last week.
HS Holdings, which owns 15.17 percent of, or 3.12 million Hankook shares it acquired in May 2008, said Friday it will recommend two new faces at the upcoming shareholders' meeting in a bid to participate in Hankook's management.
"We've tried to boost transparency in management of the cosmetics company and to develop the company's key business. But we have seen very little progress in either management or business," a spokesman of HS Holdings said.
According to industry sources, HS Holdings had planned to set up a new company with Hankook by separating off some of the latter's local plants to revive sagging momentum in the cosmetics business, a plan that was scrapped due to "uncertain reasons."
The official said shareholders of Hankook Cosmetics were disappointed in its poor performance over the past few years. For seven consecutive years, Hankook has been suffering from losses.
"Meanwhile, HS Holdings is internally investigating speculations that relatives of Hankook's top officials were involved in illegal transactions," according to the spokesman.
Hankook spokespeople weren't available for immediate comment.