[Special Stock] Hanjin Rises on Possibility of Management Dispute... Strong on News of 2nd Largest Shareholder's 'Shareholder Proposal'

[Asia Economy Reporter Hyunseok Yoo] Hanjin is showing strength. It appears that the recent shareholder proposal demanding governance improvements submitted by HYK Partners, a private equity fund and the second largest shareholder, to the board of directors has had an impact.

As of 1:47 PM on the 10th, Hanjin was trading at 47,000 KRW, up 4.44% (2,000 KRW) compared to the previous trading day.

Hanjin is a major affiliate of the Hanjin Group along with Korean Air. According to a domestic media report on the same day, ‘HYK Fund No.1’ established by HYK Partners sent a certified letter containing a ‘shareholder proposal for governance improvement and enhancement of shareholder value’ to the Hanjin board on the 8th.

HYK Fund No.1 holds a 9.79% stake in Hanjin, making it the second largest shareholder. The largest shareholder is Hanjin KAL and its special related parties, holding 27.44%.

HYK Fund No.1 proposed amendments to the articles of incorporation including ‘introduction of electronic voting system,’ ‘separate appointment of all audit committee members,’ and ‘restrictions on director qualifications (loss of director qualification for those convicted of imprisonment within the past 10 years),’ among others. Along with this, they demanded a complete transition to a professional management system based on the principle of separation of ownership and management. They also requested that at least one person recommended by HYK Fund No.1, the second largest shareholder, be appointed as an outside director. For financial structure improvement, they proposed measures such as disposal of idle assets, revision of executive compensation and retirement benefit regulations, and eradication of preferential treatment of related companies in business allocation.

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