Taekwang Industrial said it will take legal action against Truston Asset Management, its second-largest shareholder, escalating a dispute over the Taekwang Group Management Support Council, shareholder returns and corporate governance. The company called Truston’s allegations groundless and said it would pursue accountability for spreading false information and violating the Capital Markets Act. Truston’s public letter on the 3rd alleged that the informal council had operated without a legal basis for 12 years and improperly influenced management. Taekwang Industrial said the council is only a consultative body for sharing information and coordinating affiliates during restructuring and new-business initiatives, while major decisions are made independently through boards and other lawful procedures. The company also accused Truston of shifting responsibility for investment losses and using repeated shareholder letters as noise marketing. Truston reported acquiring a 5% stake in June 2021, but its holding had fallen to 1.3% by the end of June this year; Taekwang Industrial estimated the investor’s losses at about 2.5 billion won. Truston has demanded stronger shareholder returns, including a higher dividend payout ratio, and previously sought a 2 million won-per-share self-tender offer when the stock traded near 600,000 won. It said that absent a substantive response within 30 days, it could seek accounting records, file a shareholder derivative lawsuit, request an extraordinary shareholders’ meeting or report obstruction of business. The dispute also covers Taekwang Industrial’s withdrawn 318.6 billion won exchangeable-bond plan, its corporate value-enhancement measures, treasury-share plans and possible stock split. Taekwang Industrial said it would pursue a higher per-share dividend for fiscal 2026, prepare a treasury-share holding and disposal plan for approval at the 2027 annual meeting, and review a stock split over the medium to long term. An escalation into litigation could prolong scrutiny of the company’s governance structure and management transparency.