Hanjin Co., Ltd. 2nd Largest Shareholder's Proposal... Will a Management Rights Dispute Emerge?

'Certified Notice of Shareholder Proposal for Corporate Governance Improvement and Enhancement of Shareholder Value'

On the 14th, when the four major courier companies?CJ Logistics, Lotte Courier, Hanjin, and Logen Courier?halted deliveries to allow delivery drivers to rest, a courier company branch in Seoul ceased operations. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Yu Je-hoon] It has been confirmed that Hanjin Co., Ltd., the second largest shareholder, received a shareholder proposal related to corporate governance improvement and shareholder value enhancement from a private equity fund. Concerns are emerging that Hanjin Co., Ltd. might also become embroiled in a management rights dispute following Hanjin KAL.

According to industry sources on the 10th, the board of directors of Hanjin Co., Ltd. received a certified letter on the 8th from HYK1 Fund, the second largest shareholder, titled "Shareholder Proposal for Corporate Governance Improvement and Shareholder Value Enhancement." HYK1 Fund holds a 9.79% stake in Hanjin Co., Ltd., making it the second largest shareholder after Hanjin KAL and its special affiliates (27.69%).

Through the certified letter, HYK1 Fund expressed its intention to participate in management and proposed amendments to the articles of incorporation, including the introduction of electronic voting, separate appointment of all audit committee members, and restrictions on director qualifications. It also insisted that individuals recommended by HYK1 Fund should be appointed as outside directors.

The largest investor in HYK1 Fund is the textile company Kyungbang. Earlier in September, Kyungbang acquired 964,000 shares of Hanjin Co., Ltd. and subsequently transferred all of them to HYK1 Fund.

Industry insiders speculate that since the shareholder proposal includes "corporate governance improvement," there is a possibility it could lead to a management rights dispute. The parent company, Hanjin KAL, is currently experiencing a management rights dispute following demands for corporate governance improvement from the private equity fund (PEF) KCGI.

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