'Brotherly Strife' at Hanta Family Shareholders' Meeting: Vice Chairman Cho Hyun-sik's De Facto 'Victory' (Comprehensive)

[Asia Economy reporters Ki-min Lee and Je-hoon Yoo] In the first round of the management rights dispute at Hankook Tire, the eldest son, Vice Chairman Cho Hyun-sik's side, effectively won at the Hankook & Company shareholders' meeting. This is interpreted as a result of the application of the '3% rule,' which limits the voting rights of the largest shareholder and related parties to 3%.

At the regular shareholders' meeting held on the afternoon of the 30th at the headquarters in Seongnam, Gyeonggi Province, Hankook & Company appointed Professor Lee Han-sang of Korea University as an outside director to serve as an audit committee member.

Professor Lee was a candidate for audit committee member and outside director proposed by the eldest son, Vice Chairman Cho. However, Vice Chairman Cho, who led the shareholders' meeting that day, did not disclose Professor Lee's voting rate.

In his greeting at the shareholders' meeting, Vice Chairman Cho said, "We will reorganize the governance system more agilely to introduce new innovative technologies and contribute to enhancing shareholder value through quantitative and qualitative growth," adding, "From a sustainability perspective, we will strengthen ESG policies through top-level ESG responses based on principled management."

On the other hand, Kim Hye-kyung, a former Blue House Secretary for Women and Family Affairs and a candidate for audit committee member and outside director recommended by the company side including President Cho Hyun-beom, the second son, was defeated at the shareholders' meeting.

Considering that the audit committee member and outside director candidates recommended by President Cho's side won decisively at the Hankook Tire & Technology shareholders' meeting held earlier that morning, the situation was quite the opposite. At the Hankook Tire & Technology shareholders' meeting, General Electric (GE) Korea's Head of Human Resources, Lee Mi-ra, recommended by Chairman Cho's side, was appointed with an approval rate of 84%.

The outcome of the audit committee member and outside director appointments at Hankook & Company was difficult to predict. Although Chairman Cho holds 42.90% of the shares, overwhelmingly more than Vice Chairman Cho (19.32%), the second daughter Cho Hee-won (10.82%), and the eldest daughter Cho Hee-kyung, Chairperson of the Hankook Tire Nanum Foundation (0.83%), the application of the 3% rule under the revised Commercial Act was the reason.

However, with the National Pension Service expressing support for Professor Lee's appointment proposed by Vice Chairman Cho, it is interpreted that the votes of minority shareholders (about 20%) leaned toward Vice Chairman Cho's side. Earlier, the domestic proxy advisory firm Sustainvest also recommended supporting Professor Lee's appointment proposed by Vice Chairman Cho.

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