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Cho Won-tae, Chairman of Hanjin Group (Photo: Hanjin Group) |
[Alpha Biz= Paul Lee] South Korea’s National Pension Service (NPS) has decided to vote against the reappointment of Hanjin Group Chairman Cho Won-tae as an inside director of Hanjin KAL.
According to investment banking sources on March 23, the NPS Investment Management division will oppose the appointments of Cho and Vice Chairman Woo Ki-hong (CEO) at Hanjin KAL’s annual general meeting scheduled for March 26.
The NPS cited concerns that the candidates failed to adequately fulfill their oversight responsibilities in preventing actions that could damage corporate value or infringe on shareholder rights.
The pension fund also plans to vote against proposed executive compensation limits for both Hanjin KAL and Korean Air, arguing that the compensation levels are excessive relative to performance. Cho received a total of 14.58 billion won in compensation last year from four affiliates, including Hanjin KAL and Korean Air.
The NPS has previously opposed Cho’s appointment as an inside director at Hanjin KAL’s 2017 shareholders’ meeting and at Korean Air’s annual meetings in 2021 and 2024.
As of the end of last year, the NPS held a 5.44% stake in Hanjin KAL.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
