KB Financial, Chairman Yoon Jong-kyu's 3rd Term Confirmed at General Meeting... Union-Nominated Outside Director Appointment Rejected

Chairman Yoon Jong-kyu's Third Term Reappointment Approved with 73.28% of Voting Rights Against Issued Shares

[Asia Economy Reporter Park Sun-mi] The third term of KB Financial Group Chairman Yoon Jong-kyu has been officially confirmed, while the appointment of outside directors recommended by the employee stock ownership association was rejected.

At the KB Financial extraordinary general meeting of shareholders held at KB Kookmin Bank's Yeouido headquarters at 10 a.m. on the 20th, Chairman Yoon's third term was officially confirmed. The first agenda item, the appointment of Chairman Yoon Jong-kyu as an inside director, and the second agenda item, the appointment of KB Kookmin Bank President Heo In as an other non-executive director, were both approved at the extraordinary general meeting.

On the other hand, the proposals to appoint two outside directors, Professor Yoon Soon-jin of Seoul National University Graduate School of Environmental Studies and Ryu Young-jae, CEO of Sustainvest, as the third and fourth agenda items, were ultimately rejected. Both individuals were recommended as outside director candidates by KB Financial’s employee stock ownership association on September 29 through a shareholder proposal, citing their expertise in environmental, social, and governance (ESG) matters.

Just before the extraordinary general meeting, the National Pension Service, the largest shareholder of KB Financial (with a 9.97% stake), announced its intention to support agenda items 1 and 2 but oppose items 3 and 4, strengthening the likelihood that the appointment of outside directors recommended by the employee stock ownership association would be impossible. Previously, not only Korea Corporate Governance Service (KCGS), the largest domestic proxy advisory firm, but also the two global proxy advisory giants ISS and Glass Lewis recommended opposing the appointment of outside directors recommended by KB Financial’s employee stock ownership association, stating that it was unlikely to enhance shareholder value.

Under Chairman Yoon’s leadership, KB Financial has been continuously advancing ESG-related improvements, including forming the industry’s first ESG committee in March this year composed entirely of directors with expertise in governance and various fields, reducing carbon emissions, announcing KB Greenway 2020, and declaring the group’s first coal divestment policy.

With Chairman Yoon leading KB Financial for another three years until November 20, 2023, there is growing expectation that KB Financial’s ESG management will accelerate. At the extraordinary general meeting, Chairman Yoon outlined KB Financial’s future direction, including securing first place in banking and second place in non-banking sectors, becoming the number one financial platform company, expanding global presence, creating social value through ESG management, and nurturing digital talent.

Meanwhile, with the failure of the employee stock ownership association’s recommended director system at KB Financial, the introduction of labor director systems in the financial sector this year?such as the labor director system proposed by President Moon Jae-in during his presidential campaign to directly appoint workers as board directors to participate in corporate decision-making, and the union-recommended director system as its extension?has become more difficult. Attention is now focused on whether Industrial Bank of Korea, which agreed to actively discuss and promote the union-recommended director system with related organizations early next year, will introduce such a system.

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