The conflict between SNT Group and current management of KOSDAQ-listed SMEC is escalating into an all-out war. SNT Holdings, the largest shareholder, has warned of "extraordinary measures" citing alleged avoidance of shareholder proposals and lack of management transparency, while SMEC is pushing back on grounds of "procedural deficiencies" as tensions mount ahead of the March annual general meeting.
According to financial investment industry sources on the 26th, SNT Holdings expressed strong regret that SMEC has been deliberately avoiding receipt of shareholder proposals and various injunction notices. SNT Holdings claims it attempted delivery of shareholder proposals through all available means including email, fax, and certified mail starting from the 10th, but SMEC headquarters refused receipt by posting "closed and absent" notices despite being regular business days.
An SNT Holdings official stated, "We even attempted hand delivery by visiting the CEO's residence until the 13th, the deadline for shareholder proposal submissions, but SMEC remained completely unresponsive." The official criticized this as "intentional infringement of shareholder rights aimed at preventing the director appointment agenda from being tabled at the upcoming shareholder meeting." The company particularly pointed out that refusing to receive even the court's provisional disposition on shareholder registry provision represents an abandonment of basic responsibilities as a listed company.
Behind SNT Holdings' hardline response lie multiple allegations surrounding SMEC's management. SNT claims that SMEC management has been pursuing private interests through emergency treasury stock disposals violating the intent of revised commercial law, large-scale repeated internal transactions with affiliate "SMEC Service," and opaque accounting with overseas subsidiaries.
SNT stated, "These allegations are serious matters that could lead to criminal charges such as breach of fiduciary duty or regulatory sanctions including trading suspension." The company added, "We requested access to accounting records, but SMEC refused citing the flimsy excuse of being 'competitors' while maintaining opaque management." SNT explained, "Considering SNT Dynamics' machine tool revenue share and market position, it is difficult to view the two companies as competitors, and our request for accounting record access aims to verify facts and resolve uncertainties regarding allegations that could significantly impact company value."
Regarding the recent joint investment agreement for the WIA machine tool acquisition, SNT strongly urged management transparency, stating, "This is a matter with significant financial burden if additional capital is required, yet no information has been disclosed to shareholders."
SMEC maintains that SNT's claims are contrary to facts. A SMEC official countered, "The claim of delivery avoidance fails to consider the special circumstances of timing adjacent to the Lunar New Year holiday." The official added, "Rather, it is SNT's response that defies common sense, provoking an extreme dispute situation and raising unnecessary issues despite having sufficient time."
Regarding the refusal to provide accounting records, SMEC stated, "SNT Dynamics operates a machine tool business, making us substantive competitors. Broad access to our books poses significant risk of exposing critical business information to the competitive environment, requiring strict legal review."
Securities industry observers suggest that if SNT Holdings fails to obtain the shareholder registry in time, proxy solicitation itself could be blocked, making an actual vote contest at the shareholder meeting difficult. Financial investment industry analysts predict that if the allegations raised by SNT prove true, calls for accountability from SMEC management will intensify. The judicial decisions on pending injunction applications are expected to be the watershed determining the outcome of this dispute.
SNT Holdings has drawn a line in the sand, stating, "We have continued sincere consultations for management participation, but if our shareholder rights continue to be restricted, we will have no choice but to consider additional responses including extraordinary measures."