Eldest Son of Hankook Tire Family: "Company's Outside Director Candidate Has Independence Issues"

Cho Hyun-sik, Vice Chairman of Korea & Company

[Asia Economy Reporter Changhwan Lee] On the 19th, Cho Hyun-sik, the eldest son of the Korean Tire family and Vice Chairman of Hankook & Company, raised concerns about the independence of the company-recommended candidate and began securing friendly shares amid ongoing conflicts.

In a written interview through his legal representative on the same day, Vice Chairman Cho stated, "The candidate Kim Hye-kyung, recommended by the company, previously served as a secretary at the Blue House during the presidency of a major shareholder’s relative, raising issues regarding relationships with major shareholders’ relatives and government-related independence," adding, "I believe she does not meet the most important requirements as a candidate for the separately elected audit committee member."

Earlier, on the 24th of last month, Vice Chairman Cho publicly released a shareholder letter proposing Professor Lee Han-sang of Korea University as an outside director and audit committee member of Hankook & Company, staking his CEO position on Lee’s appointment. Meanwhile, the Hankook & Company board recommended Kim Hye-kyung, former Blue House Secretary for Women and Family Affairs, as an outside director and audit committee member.

Cho Hyun-beom, President of Hankook Tire & Technology and younger brother of Vice Chairman Cho, is the son-in-law of former President Lee Myung-bak. The move is interpreted as a check against Kim, who served as the Presidential Secretary for Women and Family Affairs and Civil Society during the Lee Myung-bak administration.

Vice Chairman Cho referred to the amended Commercial Act, which applies the "3% rule" for the election of audit committee members, stating, "If separately elected audit committee members are influenced by major shareholders and management, the goal of the amended Commercial Act will not be achieved at all," emphasizing, "Candidates proposed by minority shareholders, not the company, should be prioritized for appointment as separately elected audit committee members."

He continued, "Having been with the company for 25 years, I have felt that governance reform is a trend of the times and have made efforts accordingly, but considering internal circumstances and external environments, I have concluded that the issue can no longer be resolved by internal efforts alone," adding, "The purpose and intent of the shareholder proposal is solely the development of the company and improvement of governance."

He stated, "I have already stepped down from the CEO position and clearly indicated that I will respect the unified management decisions of the current management, including CEO Cho Hyun-beom," and added, "As one of the major shareholders, I will support stable and prompt management decisions together with the company, all shareholders, and employees."

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