Financial Holding Companies Entering 'Super General Meeting Week'... Key Points to Watch

[Asia Economy Reporter Kiho Sung] Next week, major domestic financial holding companies will simultaneously hold their shareholder meetings. Key agenda items at these meetings are expected to include CEO renewals, interim dividends, and the appointment of outside directors.

According to the financial sector on the 21st, regular shareholder meetings will be held on the 25th for Shinhan Financial Group, on the 26th for KB, Hana, and Woori Financial Groups, and on the 30th for NongHyup Financial Group.

The first meeting to be held is Shinhan Financial, where a revision of the articles of incorporation for quarterly dividends is expected to be a key issue. Shinhan Financial previously decided on the highest dividend payout ratio of 22.7% among the four major financial groups. Also, the appointment of newly recommended outside directors including Kwak Soo-geun, Honorary Professor at Seoul National University Business School; Bae Hoon, lawyer at Orbis Law Firm; Lee Yong-guk, Clinical Professor at Seoul National University Law School; and Choi Jae-bung, Professor in the Department of Mechanical Engineering at Sungkyunkwan University, will be major agenda items.

Hana Financial will discuss the appointment of Chairman Kim Jung-tae as an inside director along with the appointment of Park Sung-ho, the designated President of Hana Bank, as a non-executive director. With Park’s inclusion, Hana Financial’s board will consist of a total of 10 members. The outside director appointment agenda includes the appointment of two new members and the reappointment of six existing members. The new appointees recommended are Kwon Sook-kyo, Research Professor at Korea University Business School’s Corporate Management Research Institute, and Park Dong-moon, former CEO of Kolon Industries.

Woori Financial is drawing attention for its agenda on reducing capital reserves. This means converting 4 trillion won of capital reserves into retained earnings that can be used for dividends, thereby increasing future dividend capacity. Meanwhile, KB Financial will decide on the reappointment of five existing outside directors.

NongHyup Financial Group will finalize and announce its dividend payout ratio on the day of the shareholder meeting. Prior to this, the board meeting is expected to reveal outlines of the dividend payout ratio and total dividend amount.

Among the five major financial holding companies, NongHyup Financial is the only one that has yet to decide on dividends. Unlike other financial groups, NongHyup Central Cooperative holds 100% of its shares. If all dividends are paid to NongHyup Central Cooperative, they are used for the benefit of farmers. This unique situation is why NongHyup Financial’s deliberation is prolonged. Although most dividends go to farmers, it is difficult to ignore regulatory recommendations.

Meanwhile, all financial holding companies are encouraging electronic voting and proxy voting due to COVID-19, as they did last year. They also plan to thoroughly implement COVID-19 measures such as placing thermal cameras or digital thermometers at the meeting venues to check for fever.

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