ISS·KCGS, Korea's Largest Domestic and International Proxy Advisors, Recommend Approval for Hanjin KAL's Cho Won-tae Appointment

On the morning of the 3rd, a citizen is passing in front of the Hanjin Group headquarters in Jung-gu, Seoul. Photo by Yonhap News

[Asia Economy Reporter Yoo Je-hoon] Major domestic and international proxy advisory firms have recommended approval of Chairman Cho Won-tae's reappointment as CEO at the Hanjin KAL regular shareholders' meeting scheduled for the 27th.

According to industry sources on the 14th, ISS (Institutional Shareholder Services) recommended approval of Chairman Cho's nomination as an inside director at the Hanjin KAL shareholders' meeting held the previous day. ISS is regarded as the world's largest proxy advisory firm.

ISS recommended approval not only for Chairman Cho but also for Ha Eun-yong, Vice President of Finance at Korean Air, as inside directors. ISS explained the rationale for their recommendation by stating that both Chairman Cho and Vice President Ha "possess experience and expertise beneficial to the company."

Furthermore, ISS judged the appropriate board size to be between 6 and 10 members. Accordingly, they expressed approval for outside director candidates Kim Seok-dong, Park Young-seok, and Choi Yoon-hee, who were recommended by Hanjin KAL, while opposing candidates Lim Chun-soo and Lee Dong-myung due to "overlapping experience."

On the other hand, candidates from the three-party coalition consisting of private equity fund KCGI, former Korean Air Vice President Cho Hyun-ah, and Bando Construction received widespread opposition recommendations. Only candidate Kim Shin-bae received approval, with the reason being "past management and outside director experience at other companies expected to be helpful," while all other candidates (Bae Kyung-tae, Ham Cheol-ho, Seo Yoon-seok, Yeo Eun-jung, Lee Hyung-seok, Gu Bon-ju) were recommended for rejection.

Meanwhile, Korea Corporate Governance Service (KCGS), the largest domestic proxy advisory firm, also recommended approval of Chairman Cho's appointment and advised 'non-exercise' regarding the shareholder coalition's candidates the previous day.

An industry insider stated, "Both the world's largest proxy advisory firm and the largest domestic proxy advisory firm have sided with Chairman Cho," adding, "The atmosphere is increasingly favorable for Chairman Cho's appointment as an inside director of Hanjin KAL."

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