The National Pension Service (NPS) decided to vote against the proposal to appoint Cho Won-tae, chairman of Hanjin Group, as an inside director at Hanjin KAL.
According to the investment banking (IB) industry on the 23rd, the National Pension Service's Fund Management Headquarters said it would oppose the appointment of Chairman Cho and Woo Kee-Hong, vice chairman (CEO) of Hanjin Group, as inside directors at the regular shareholders meeting of Hanjin KAL to be held on the 26th.
The National Pension Service said it opposed the move because they fall under "persons who neglected their duty to monitor clear acts of corporate value damage or infringement of shareholder rights."
In addition, it expressed opposition to approving the compensation limits at Hanjin KAL and Korean Air Lines. The total compensation Chairman Cho received last year from four affiliates, including Hanjin KAL and Korean Air Lines, amounted to 14.57818 billion won. It said the compensation limits and the actual amounts paid are excessive compared with performance.
The National Pension Service also opposed Chairman Cho's appointment as an inside director at the Hanjin KAL shareholders meeting in Mar. 2017 and at the Korean Air Lines shareholders meetings in 2021 and 2024.
As of the end of last year, the National Pension Service held a 5.44% equity stake in Hanjin KAL.