*This content was translated by AI.
CEO Jeon Sung-ho of Solum Co., Ltd. and Align Partners Asset Management (CEO Lee Chang-hwan, hereinafter referred to as "Aline Partners") said they have reached a comprehensive agreement to advance Solum's governance and maximize shareholder value. The two sides agreed to take steps to advance governance, including strengthening board independence, to bridge the gap in perspective so that SoloM, a global leader in electronic components and ESL, can be valued and maximized in the market.
In December last year, Align Partners filed a lawsuit against RCPS issued by Solum claiming that it could infringe on the rights and interests of existing shareholders, and recently filed a provisional injunction against RCPS investors, including a ban on the disposal of shares. In addition, on February 12, 2026, through a shareholder proposal, it demanded the establishment of three detailed committees to secure independence of one director and the joining of experts from LG Electronics and Lotteon on the board of directors.
In response, Align Partners and CEO Jeon Sung-ho discussed ways to restore trust for the long-term growth of the company and agreed to implement specific governance advancement measures as follows for the development of Solum.
CEO Jeon Sung-ho decided to preemptively resolve market concerns related to the third-party RCPS issued in June 2025. To this end, the largest shareholder decided to distribute 50% of the call option volume granted to him as an incentive to key executives and employees recommended by the Evaluation and Compensation Committee. In addition, it was decided to prevent shareholders from diluting voting rights by establishing an environment in which RCPS investors could vote neutral on major shareholders' meeting agendas without exercising preferential buying rights for RCPS. CEO Jeon Sung-ho said, "We will soon proceed with related procedures to reflect these contents and communicate transparently with the market and shareholders through public disclosure."
To increase Solum's management transparency, CEO Sung-ho Jeon and Alliance Partners agreed to push for a change in the articles of incorporation at the 2026 general shareholders' meeting, forming a majority of the board of directors as independent directors, and setting up an internal transaction committee, an independent director candidate recommendation committee and an evaluation and compensation committee. Furthermore, in order to strengthen the independence and professionalism of the board of directors, it will propose the appointment of Seo Young-jae, a strategic expert from LG Electronics recommended by the Alliance, and Na Young-ho, an e-commerce and distribution expert from Lotteon, as independent directors. In the case of auditors, the government decided to expand the existing full-time auditor system to two people to strengthen audit functions, and to further enhance professionalism and transparency by proposing a proposal to appoint candidate Lim Sung-yeol, a financial expert jointly verified by the two sides as an auditor.
CEO Jeon Sung-ho and Alliance Partners have also reached meaningful agreements in various areas such as management succession and human division to enhance Solum's corporate value. After leaving office, CEO Jeon Seong-ho announced that he would switch to a professional management system (excluding related persons) with expertise and capabilities, and decided to stipulate this in the corporate governance report to be disclosed in the future. In addition, CEO Jeon Sung-ho agreed to comprehensively consider Solum's various conditions and market conditions to improve the operational efficiency of the business sector and enhance corporate value, and to promote human division when appropriate as a way to improve the profits of the company and shareholders, and to ensure that the two companies can carry out their own professional management without acquiring mutual shares.
CEO Lee Chang-hwan said, "This agreement is a meaningful inflection point for Solum's shareholder value enhancement," adding, "In the meantime, Solum has not fully displayed its corporate potential and has been undervalued in the market, but we hope that governance will be improved and shareholder value will be improved starting with this agreement." He revealed that Solum will continue to pay active attention and support as a shareholder so that it can restore market valuation worthy of its status as a leading global electronic components and ESL company.
"I think it is positive that Aline Partners will be able to sympathize with Solum's long-term growth strategy and future vision and design governance improvement together," CEO Jeon Sung-ho said. "In the future, we plan to establish Solum as the No. 1 global governance company beyond the global ESL No. 1 and to establish a sustainable mid- to long-term growth base by maximizing financial and non-financial performance at the same time." "Through this, we will grow into a company that provides real value to both shareholders and stakeholders," it added.
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*This content was translated by AI.
