Hyundai Motor Group's 12 Listed Predecessor Affiliates Adopt Electronic Voting System at General Shareholders' Meetings

[Asia Economy Reporter Su-yeon Woo] Hyundai Motor Group's all listed affiliates will introduce an electronic voting system. Following the proactive adoption of the electronic voting system last year by three companies?Hyundai Glovis, Hyundai BNG Steel, and Hyundai Motor Securities?the remaining nine listed affiliates have decided to expand the introduction of the electronic voting system.

On the 12th, Hyundai Motor Group announced that nine affiliates?Hyundai Motor, Kia Motors, Hyundai Steel, Hyundai Mobis, Hyundai Construction, Hyundai Wia, Hyundai Rotem, Innocean, and Hyundai AutoEver?will finalize the adoption of the electronic voting system through resolutions at each company's board meetings held this month. These affiliates plan to enable shareholders to exercise their voting rights via the electronic voting system starting from the shareholders' meetings scheduled for next month. This reflects the group's commitment to establishing a solid trust relationship with shareholders and market stakeholders, aiming to simultaneously enhance corporate value and shareholder value.

The electronic voting system allows shareholders to exercise their voting rights via internet electronic voting without attending the shareholders' meeting in person, once the company registers the shareholder list and agenda items on the electronic voting system. It is recognized as a representative shareholder-friendly policy that improves shareholder convenience in attending meetings and encourages more active exercise of shareholder rights, thereby enhancing shareholder interests.

The nine listed affiliates newly adopting the system, including Hyundai Motor, Kia Motors, and Hyundai Mobis, plan to provide detailed procedures and methods related to electronic voting through notices of shareholders' meetings after board resolutions.

A Hyundai Motor Group official stated, "Through the introduction of the electronic voting system across all listed companies, we will build a more transparent decision-making system that prioritizes shareholder rights," adding, "We will continue to expand communication with shareholders and the market and enhance shareholder value through active profitability management and shareholder-friendly policies."

Alongside this, Hyundai Motor Group is promoting measures to enhance transparency in the boards of major unlisted companies within the group. Unlisted companies Hyundai Transys and Hyundai Engineering plan to propose the appointment of one external expert as an outside director at their shareholders' meetings scheduled for next month. Although there is no legal obligation for unlisted companies to appoint outside directors, it is expected that appointing new outside directors will significantly strengthen the expertise and transparency of their boards.

Each affiliate of Hyundai Motor Group is making various efforts to enhance shareholder value and establish a transparent decision-making structure that meets global standards. Since Hyundai Motor first established a transparent management committee composed solely of outside directors within its board in 2015 to protect shareholder rights, affiliates such as Kia Motors and Hyundai Mobis have been expanding this practice.

Since 2018, candidates for outside directors responsible for protecting shareholder rights on the transparent management committee have been recruited from general shareholders both domestically and internationally. Additionally, Hyundai Motor, Kia Motors, and Hyundai Mobis established remuneration committees last year to determine directors' compensation.

The group is also actively fulfilling its commitment to shareholder returns through shareholder- and market-friendly policies. Hyundai Motor and Hyundai Mobis announced a new dividend policy to set dividend levels based on free cash flow and are conducting share buybacks and cancellations, which effectively enhance shareholder value.

Hyundai Motor has committed to purchasing a total of 300 billion KRW worth of treasury shares by February this year, while Hyundai Mobis canceled treasury shares worth 260 billion KRW in the first half of last year and recently canceled an additional 53 billion KRW worth of treasury shares.

Furthermore, Hyundai Motor Group affiliates have recruited top experts in global governance, investment finance, and technology strategy as outside directors to enhance the independence, expertise, and transparency of their boards. At last year's shareholders' meeting, Hyundai Motor expanded its board from nine members (five outside directors, four inside directors) to eleven members (six outside directors, five inside directors). Hyundai Mobis, for the first time since its founding, appointed two foreign outside directors, which was evaluated as elevating the status and capabilities of its board to a higher level.

Hyundai Motor Group is also attentive to communication with the market. Following Hyundai Motor's inaugural 'CEO Investor Day' last year, where it disclosed mid- to long-term management strategies and key financial strategies to shareholders, analysts, and credit rating agencies, Kia Motors held the same event in January this year.

This content was produced with the assistance of AI translation services.