ISS, the World's Largest Proxy Advisory Firm, Opposes KB Union-Recommended Outside Director

[Asia Economy Reporter Bu Aeri] The world's largest proxy advisory firm ISS (Institutional Shareholder Services) has expressed opposition to the appointment of an outside director candidate recommended by the KB Financial Group labor union.

ISS is an organization that analyzes corporate shareholders' meeting agendas for global investors and provides voting guidelines.

According to the financial industry on the 13th, ISS advised voting against the agenda item for the appointment of outside director Kim Young-su at the shareholders' meeting scheduled for the 25th in its report related to KB Financial Group.

Previously, the KB Financial Group Labor Union Council had submitted a proxy recommending former Export-Import Bank Vice President Kim Young-su as an outside director candidate.

In the report, ISS stated, "The labor union recommended candidate Kim, believing his overseas experience would bring valuable changes to the board, but we believe his core strength throughout his career lies in 'banking business.' However, expertise in banking business is also found in other director candidates and existing directors, and there are doubts whether his expertise in infrastructure or urban development can contribute to improving KB Financial Group's extensive overseas business handling various financial products and assets," expressing a negative opinion.

Furthermore, ISS explained, "The labor union argues that according to the recently passed 'Amendment to the Act on the Management of Public Institutions,' KB Financial's board should recruit directors nominated by the labor union, but since KB is neither a government-owned company nor a quasi-governmental agency, KB is not subject to this amendment."

On the other hand, ISS expressed support for the appointment of new outside director candidate Choi Jae-hong, a professor at Gangneung-Wonju National University, who was nominated by KB Financial Group's Outside Director Candidate Recommendation Committee, as well as the one-year reappointment of six existing outside directors.

With ISS recommending opposition, it appears that the labor union side will face difficulties in securing approval votes for their recommended outside director at the KB Financial Group shareholders' meeting on the 25th.

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