Local civic group Solidarity for Economic Reform filed a lawsuit against National Pension Service, which refused to disclose information about the latest merger between Samsung C&T Corporation and Cheil Industries.
The U.S. hedge fund company Elliott is also said to send the fund an official letter asking the grounds for approving the merger and also for its decision-making process.
The lawsuit came as the former largest shareholder of Samsung C&T made a decision at its internal organization during the merger process, breaking its traditional custom that it leaves a sensitive issue to the independent committee.
The civic group requested to disclose information - mainly about minutes regarding the mega deal - from the NPS on July 21 after the shareholders passed the merger on July 17.
However, the NPS refused to disclose details on July 30 on the ground that the disclosure would negatively affect the company’s fair work process.
The Solidarity for Economic Reform accused the NPS, releasing a statement on Tuesday that, "The NIS is not just an institutional investor. Allowing for its public character, its operation should be more objective and transparent."
It added that, "Also, considering that the NPS is an institution monitored by the public who entrusted their pension assets, the fund cannot simply refuse the information disclosure claiming it is confidential."
Industry watchers say if the NPS does not properly respond to the call, Elliott may file a lawsuit against the fund.
Earlier the American hedge fund exercised its stockholder appraisal rights for the 4.95 percent of the total 7.12 percent of its Samsung C&T shares after it lost to the Korean firm at the shareholders' meeting in July.
