National Pension Service to Hold Protest Against LG Chem Battery Division Spin-Off

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] The National Pension Service has decided to exercise its voting rights against the physical division of LG Chem's battery business division.

The National Pension Service's Stewardship Responsibility Committee announced on the 27th that at the 16th meeting held on the same day, it reviewed the direction of exercising voting rights on the agenda of LG Chem's extraordinary general meeting of shareholders and made this decision.

The committee sympathized with the purpose and intent of the division plan but judged that there were concerns about the dilution of shareholder value, including the possibility of share value dilution affecting the National Pension Service's shareholder value. However, some members reportedly expressed dissenting opinions.

Previously, most proxy advisory firms recommended approval of the physical division agenda, so it was widely expected that the National Pension Service would also cast a favorable vote.

Meanwhile, LG Chem's extraordinary general meeting of shareholders will be held on the 30th. As of the 29th of last month, the National Pension Service holds a 10.28% stake in LG Chem, making it the second-largest shareholder.

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