The National Pension Service’s stock investment in Samsung C&T has suffered a loss of 590 billion won ($500 million) since it voted to approve the merger of Samsung C&T and Cheil Industries in July last year, industry data showed Sunday.
According to Chaebul.com, which traces the finances of Korean conglomerates, the NPS’ holdings of Samsung C&T’s stocks were valued at 1.51 trillion won as of Thursday, a 28 percent decline from a combined 2.1 trillion won of the former Samsung C&T and Cheil Industries stocks that were priced based on shareholders’ purchase rights prior the merger of the two Samsung subsidiaries.
Before the July merger, the NPS had an 11.61 percent stake in the former Samsung C&T and a 5.04 percent in Cheil Industries. Currently, the NPS holds a 5.78 percent stake in Samsung C&T.
The NPS refuted the report claiming that the decline in stock value is due to “market conditions.”
“During the period, market situations largely affected the decline, just like construction and retail sectors on Kospi fell 27.14 percent and 22.1 percent, respectively,” the NPS said in a statement.
Local daily Hankyoreh had reported that NPS Chairman Moon Hyung-pyo, then health and welfare minister, pressured a member of the NPS’ voting committee to vote in favor of the merger between the two Samsung companies. The NPS flatly denied the report.
The NPS is Korea’s largest institutional investor.
By Kim Yoon-mi (
yoonmi@heraldcorp.com)
