Dec 13, 2005. /Lesprom Network/. South Korea's Kukil Paper MFG Co. gained control of the management of the nation's №2 papermaker Shinho Paper Mfg. Co. at an emergency shareholders' meeting Tuesday. At the meeting, Shinho's shareholders elected five board members siding with Kukil Paper, including the president of Kukil. As a result of Tuesday's shareholders' meeting, Kukil secured support from nine members out of the 12-seat board. The stockholders also ousted one of the board members and the former president of Shinho Paper, Lee Sun-kuk, from his position. Shinho Paper's management, however, disapproved of the result in a statement claiming that they had been blocked from entering the meeting. Shinho emerged from a debt workout program in late 2004 when its 31 creditors sold a 54% stake for KRW 455 billion ($411.78 million) to a consortium led by Aram Financial Service. Since Aram sold a 19.81% stake to South Korea's Kukil Paper in August 2006, Shinho has been embroiled in a dispute concerning managerial control. The conflict flared up in November when Shinhan Bank obtained a 11.8% stake from Aram. The bank supported Kukil at the shareholders' meeting. Unionists backed the current management of Shinho until last week when they suddenly withdrew their support, citing what they called ethical problems. Kukil Paper, Aram, Shinhan Bank and other parties favorable to Kukil hold a 67% stake in Shinho Paper.