The unprecedented muscle-flexing by equity fund Sovereign Asset Management in its bid to oust management at SK Corp has spooked the South Korean establishment, and forced a reappraisal of foreign portfolio investors.
While minority shareholder groups have been active since the mid-1990s, and some foreign funds have attempted to influence management in Korea - notably, George Soros' Tiger Fund - no entity has pursued its quarry as doggedly as Sovereign.
'It has not been easy to ignore them,' said Hank Morris, a director at Industrial Research and Consulting. 'Sovereign is foreign, and that itself brings a high profile. It has obviously touched a raw nerve.'
Indeed, the media, conglomerates and the government have rallied behind the seemingly beleaguered company. For instance, Samsung Electronics and mobile-phone maker Pantech both invested in SK Corp in the run-up to the annual meeting, in what analysts saw as white knight tactics.
Meanwhile, the National Pension Fund said it would vote on its shares in favour of Chey Tae-won.
And the media have characterised Sovereign's actions as a 'hostile takeover' - despite its protestations that its only aim is to change SK Corp's chairman.
