Voting Advisory Firm 'ISS' Supports Kumho Petrochemical's Management Proposals at General Meeting

[Asia Economy Reporter Hwang Yoon-joo] ISS (Institutional Shareholder Services), the world's largest proxy advisory firm, has expressed support for all the agenda items proposed by Kumho Petrochemical ahead of the shareholders' meeting scheduled for the 26th.

According to Kumho Petrochemical on the 14th, ISS supported all contentious agenda items including Kumho Petrochemical's dividend proposal of 4,200 KRW per common share and 4,250 KRW per preferred share, the appointment of Baek Jong-hoon as an inside director, and the appointment of outside directors including former Constitutional Court Justice Lee Jung-mi.

On the other hand, ISS recommended opposing the dividend proposal of 11,000 KRW per share proposed by Executive Director Park Cheol-wan and the agenda to appoint Park Cheol-wan himself as an inside director. ISS analyzed that Park's dividend proposal could impose a financial burden on the company during difficult market conditions, and concluded that the director appointment proposal was "generally radical and insufficiently persuasive."

In its report, ISS stated that "the proposed amendments to the articles of incorporation and board candidate agenda by Kumho Petrochemical will lead to better corporate governance in the long term."

ISS evaluated Kumho Petrochemical's total shareholder return (TSR) and profit-generating ability as high compared to peers in the same industry regarding the financial statements and dividend agenda.

Regarding the proposed amendment to separate the roles of CEO and board chairperson, ISS also recommended support, stating that "it can sufficiently strengthen the board's responsibility and independence."

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