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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The change allows the NPS to exercise broader shareholder rights, including expressing opinions on dividend policy, board appointments, executive compensation limits, and corporate governance issues. Under Korea’s Capital Markets Act, investment purposes are classified as passive investment, general investment, or management participation.
Market observers say the move reflects improving performance in the telecom sector and the NPS’s view that stronger governance oversight is needed to enhance corporate value. The change comes about a year after the fund last revised its investment purpose for KT.
While the NPS has not issued a public statement regarding the ongoing selection process for KT’s next CEO, speculation is growing that it could take a more active stance amid recent controversy over the board’s management involvement.
KT’s board is also reported to have delayed approval of a compensation plan related to a recent femtocell hacking incident, with the estimated customer compensation package reportedly reduced from around KRW 600 billion to KRW 400 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
