"No Upset Despite ISS Opposition" All Financial Holding Company Directors Reappointed

Woori and Shinhan Financial Group Reappoint Outside Directors Despite ISS Opposition
KB Financial Group Approves Original Plan... Five Outside Directors Passed
Hana Financial Group Confirms Chairman Kim Jung-tae's One-Year Term Extension

[Asia Economy Reporter Kwangho Lee] 'No surprises.' Despite the world’s largest proxy advisory firm ISS, the National Pension Service, and the Korea Corporate Governance Service expressing opposition to the reappointment of outside directors at financial holding companies, their objections had little effect. Although foreign shareholders, who highly value ISS’s opinions, hold a significant stake, the proposals passed smoothly as expected, supported by stable earnings growth.

On the 26th, according to the financial sector, Woori Financial Group held its regular shareholders' meeting at the Synergy Hall on the 5th floor of its headquarters in Jung-gu, Seoul, and reappointed five outside directors?Noh Sung-tae, Park Sang-yong, Jung Chan-hyung, Jeon Ji-pyeong, and Jang Dong-woo?whose terms had expired, along with inside director Lee Won-duk, each for a one-year term.

Previously, ISS and the Korea Corporate Governance Service officially opposed the appointment of most of Woori Financial Group’s board members. The National Pension Fund, the second-largest shareholder, also exercised its voting rights against all outside director appointments except for inside director Lee Won-duk. They cited "negligence in monitoring duties related to corporate value damage or shareholder rights infringement due to incomplete sales of overseas interest rate-linked collective investment securities (DLF)" as their reason, but this did not change the overall outcome.

ISS also issued mass opposition recommendations against outside directors of Shinhan Financial Group, but all passed smoothly. At the shareholders' meeting held the previous day, Shinhan Financial approved the reappointment of Shinhan Bank President Jin Ok-dong, who was re-nominated as a non-standing director, and six outside directors whose terms were expiring (Park An-soon, Byun Yang-ho, Sung Jae-ho, Lee Yoon-jae, Choi Kyung-rok, Heo Yong-hak) as originally proposed. New outside director appointments including Bae Hoon, Kwak Soo-geun, Lee Yong-guk, and Choi Jae-bung were also approved.

All Proposals Passed Supported by Performance Despite Opposition from Largest Voting Bodies and National Pension Service

ISS urged shareholders to vote against President Jin and the six existing outside directors due to disciplinary actions related to the Lime Fund scandal and guilty verdicts for employment irregularities involving Shinhan Financial Chairman Cho Yong-byeong, but their stance was rejected.

KB Financial Group and Hana Financial Group also reappointed all outside directors without significant opposition. At the shareholders' meeting on the same day, KB Financial passed the reappointment of five outside directors: Sunwoo Seok-ho, Stuart Solomon, Choi Myung-hee, Jung Gu-hwan, and Kim Kyung-ho.

At Hana Financial’s shareholders' meeting held on the same day, two new outside directors, Kwon Sook-kyo and Park Dong-moon, were appointed to replace outside directors Yoon Sung-bok and Cha Eun-young, who completed their six-year terms. Additionally, the reappointment of six outside directors?Park Won-gu, Kim Hong-jin, Yang Dong-hoon, Heo Yoon, Lee Jung-won, and Baek Tae-seung?was approved. Notably, Hana Financial Group officially confirmed the one-year extension of Chairman Kim Jung-tae’s term. The Chairman Nomination Committee had selected Chairman Kim as the final candidate for the next chairman last month. The proposal to appoint Park Sung-ho, who was inaugurated as Hana Bank President the day before, as a non-standing director was also approved.

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