Kumho Petrochemical, Director Park Cheol-wan Rejected... Most Company Proposals Passed (Update)

Executive Director Park Cheol-wan Rejected as Inside Director... Appointment of Professor Baek Jong-hoon Proposed by Management
Dividend Raised to 4,200 Won · Auditor Hwang Yi-seok Appointed
Most Proposals by Kumho Petrochemical Passed

On the 26th, shareholders are attending the '44th Kumho Petrochemical Annual General Meeting' held at Kumho Petrochemical in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Yoon-joo] The entry of Park Cheol-wan, executive director and nephew of Kumho Petrochemical Chairman Geum Bak-chan-gu, into the board of directors was blocked amid a management rights dispute. Earlier, the bold high-dividend proposal put forward by Executive Director Park was also rejected. The agenda to separate the CEO and the chairman of the board was dismissed due to lack of quorum, but the audit committee member (outside director) proposed by the company, Professor Hwang Yi-seok of Seoul National University Business School, was appointed, marking Kumho Petrochemical's effective success in defending its management rights.

On the 26th, Kumho Petrochemical held the 44th regular shareholders' meeting at its headquarters in Jung-gu, Seoul, where a vote on the appointment of outside directors took place. A total of 80.2% (2,056 people) of shares with voting rights, including proxy votes, attended the meeting.

The most important agenda item, the appointment of inside directors, saw the company’s nominee, Executive Director Baek Jong-hoon, head of Kumho Petrochemical’s sales division, appointed with 64.0% approval. Executive Director Park received 52.7% of the votes, failing to enter the board. It is reported that Executive Director Park left during the inside director voting process.

The financial statements and profit distribution agenda proposed by the company also passed with 64.4% approval. Accordingly, Kumho Petrochemical will pay dividends of 4,200 KRW per common share and 4,250 KRW per preferred share. The high-dividend proposal by Executive Director Park’s side, offering 11,000 KRW per common share and 11,050 KRW per preferred share, was rejected with 35.6% approval.

The audit committee member (outside director) proposed by the company, Professor Hwang Yi-seok, was approved with 69.3% of the votes. The candidate proposed by Executive Director Park’s side, Lee Byung-nam, head of Boston Consulting Group Korea Office, received 30.5% and was rejected.

Outside directors appointed included Professor Choi Do-seong of Gachon University, former Constitutional Court Justice Lee Jeong-mi, and Professor Park Soon-ae of Seoul National University Graduate School of Public Administration, all proposed by the company.

However, the proposals to separate the CEO and the chairman of the board from both the company and Executive Director Park’s sides were rejected due to insufficient quorum.

Earlier, the business community anticipated Chairman Geum’s success in defending management rights. This was because ISS, the world’s largest proxy advisory firm, supported Chairman Geum’s proposals, and the National Pension Service effectively recommended votes in favor of Chairman Geum’s side.

Meanwhile, the agenda for the 6th item (appointment of one outside director as audit committee member) and others are pending submission.

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