On March 5, 2019, Dalton Investments LLC issued a letter to the directors of Hyundai Home Shopping Network Corporation. In the letter, Dalton Investments stated that it makes several recommendations to the Company’s management in order to improve the Company’s shareholder value. Dalton Investments believes that its views are consistent with those of many other minority shareholders. Dalton Investments stated that in its view, the Company’s disappointing performance appears to be primarily due to poor capital allocation. Dalton Investments added that while the Company has created significant value, the value has not been shared with minority shareholders. Dalton Investments stated that while long-term shareholders have suffered losses, management has seen its compensation remain stable or increase. Dalton Investments added that there is a lack of alignment of interest between that of management and that of all shareholders. Dalton Investments stated that to improve Company’s capital allocation and shareholder value, it recommends the following steps be taken: (1) buyback and cancel shares (preferred) and/or increase dividends, (2) pay 40-70% of senior management’s annual compensation in restricted shares to align interests of management with those of minority shareholders, (3) evaluate senior management’s performance primarily based on ‘economic value added’, and (4) split and merge companies to unlock value and streamline.