Sustinbest Recommends Opposing the Appointment of Former Lawmaker Kim Dong-cheol as KEPCO President

Korea Electric Power Corporation (KEPCO) is preparing for a resolution at an extraordinary general meeting of shareholders to appoint former lawmaker Kim Dong-cheol as the new president, but the proxy advisory firm Sustainvest has reportedly recommended institutional investors to oppose the appointment.

Sustinbest CI [Image source=Yonhap News]

According to the financial investment industry on the 12th, Sustainvest expressed opposition to the agenda of appointing former lawmaker Kim Dong-cheol as president at the extraordinary general meeting to be held on the 18th at KEPCO's headquarters in Naju, Jeollanam-do. Sustainvest explained that it recommended opposition due to insufficient information to verify Kim's management capabilities at a time when KEPCO's financial condition is deteriorating and the direction of its business is becoming crucial.

As of the end of June, the Korea Development Bank, KEPCO's largest shareholder, holds 32.9% of KEPCO's shares, and when combined with the 18.2% held by the government, a special related party of the largest shareholder, the total exceeds 51.1%, constituting a majority. The National Pension Service holds a 6.55% stake.

According to the Act on the Management of Public Institutions, the KEPCO president is finally appointed by the President upon the recommendation of the Minister of Trade, Industry and Energy, following the review and resolution of the Government Public Institution Management Committee, the KEPCO board of directors, and the general shareholders' meeting, after the executive recommendation committee submits multiple candidates.

Former lawmaker Kim served four terms (17th to 20th National Assembly) representing Gwangsan District in Gwangju, mostly affiliated with Democratic Party-related parties. However, during the 20th presidential election, he supported Yoon Seok-yeol, the People Power Party candidate, serving as a special advisor to the campaign and head of the Regional Harmony Division of the New Era Preparation Committee. After Yoon Seok-yeol was elected president, Kim worked as the vice chairman of the National Integration Committee of the Presidential Transition Committee.

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