Labor Sector: "National Pension Service Must Exercise Shareholder Rights in Hyundai Steel, Kakao, and E-Mart"

The labor sector is holding a press conference on the 24th in front of the National Pension Service Chungjeongno Building in Seoul, urging the exercise of shareholder rights.
[Photo by Oh Gyumin, trainee reporter]

[Asia Economy Reporter Lee Gwan-ju, Trainee Reporter Oh Gyu-min] Labor groups have recently called on the National Pension Service to exercise shareholder rights against companies such as HDC Hyundai Development Company (Hyundai Development), which have caused controversy due to industrial accidents.

The Korean Confederation of Trade Unions (KCTU), Federation of Korean Trade Unions (FKTU), People's Solidarity for Participatory Democracy, National Construction Industry Federation, and the Public Transport Workers' Union National Pension Branch held a press conference on the morning of the 24th in front of the National Pension Service Chungjeongno building in Seodaemun-gu, Seoul, stating, "The current corporate governance structure, where major shareholders with small stakes arbitrarily control company management, must be improved, and a structure where the board of directors acts as a responsible management entity must be established."

They cited Hyundai Development, as well as Kakao and Kakao Pay, which have faced issues with reckless physical division and executives' 'eat-and-run sales,' and Emart, which was embroiled in controversy over 'anti-communist remarks,' as representative companies. Especially since the 'Stewardship Code' was introduced in 2018, they demanded that the National Pension Service fulfill its responsibilities toward invested companies and even pursue shareholder derivative lawsuits. Han Sung-gyu, Vice Chairman of the KCTU, said, "We strongly request that the National Pension Service act as the 'butler' of the nation's retirement funds."

They demanded that the National Pension Service submit shareholder proposals to Hyundai Development for appointing public interest directors who are experts in industrial safety and construction quality management, propose amendments to the articles of incorporation to limit the exercise period of stock options and submit dismissal proposals for problematic executives at Kakao, and also request measures to prevent recurrence to reduce 'owner risk' at Emart.

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