This article was published on Jan. 22, 2025, at 11:09 a.m. on the ChosunBiz MoneyMove (MM) site.
Daemyung Sonogroup, which has officially participated in the management of T'way Air, is pushing for a plan to elect a total of nine candidates to the board of directors at the regular shareholders' meeting in March. Chairman Seo Jun-hyuk is included among the candidates, but he plans not to challenge for the position of CEO.
On the 22nd, according to investment banking (IB) industry sources, Daemyung Sonogroup has confirmed that it sent a shareholder proposal with this content to the management of T'way Air.
T'way Air's articles of incorporation stipulate that the board of directors shall consist of 3 to 12 members, but currently, there are only 7 directors. The upper limit is 12, but there are already 5 vacant seats.
Among the 7 current directors, 4 will see their terms expire in March. The directors whose terms are expiring include CEO Jeong Hong-geun, Business Headquarters Head Kim Hyung-yi, two internal directors, and outside director Kim Sung-hoon and Choi Sung-yong, CEO of The Snowball. Na Seong-hun, vice chairman of the largest shareholder YeaRimDang, will not see his term expire.
Daemyung Sonogroup demands the resignation of the current management of T'way Air, but pushing for the dismissal of directors whose terms are still active is virtually impossible. Dismissals of directors require a special resolution at the shareholders' meeting, which must pass with 67% approval from attending shareholders. Currently, Daemyung Sonogroup holds approximately 26.77% of the equity. The largest shareholder, YeaRimDang, and Tway Holdings each possess 30.06%.
It is reported that the candidate for director recommended by Daemyung Sonogroup this time also includes Chairman Seo Jun-hyuk. However, even if Chairman Seo enters the board in the future, he is not expected to challenge for the CEO position. It is said that Daemyung Sonogroup plans to recommend someone from the aviation industry for the CEO position after securing a majority on the board.