National Pension Service Considers Changing Purpose of Hanjin KAL Shareholding to 'General Investment'

[Asia Economy Reporter Ji-hwan Park] The National Pension Service (NPS) is considering changing its purpose of holding Hanjin KAL shares from active management participation to simple investment or general investment.

According to the NPS on the 23rd, the NPS Stewardship Responsibility Committee (Stewardship Committee) held a meeting the day before to discuss the proposal to change the purpose of holding Hanjin KAL shares.

Since introducing the 'Stewardship Code' in 2018, which outlines principles for institutional investors' exercise of voting rights, the NPS has actively exercised voting rights to improve the governance of companies facing 'owner risk'.

Regarding Hanjin KAL, in March last year, the NPS changed its purpose of holding shares from simple investment to management participation before the shareholders' meeting and proposed amendments to the articles of incorporation. In March this year, it also supported the reappointment of Chairman Cho Won-tae, who was involved in a management rights dispute.

The reason the NPS is seeking to change the purpose of holding shares is interpreted as considering factors such as declining returns, reduced shareholding ratio, and controversies over neutrality amid the sibling management dispute within the Hanjin Group. The NPS's shareholding ratio in Hanjin KAL significantly decreased from 7.3% in January last year to 2.9% in March this year.

The change in the purpose of holding shares is expected to be first reviewed by the Stewardship Committee and ultimately decided by the Fund Management Committee (Fund Committee), the highest decision-making body of the National Pension Fund.

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