KCGI Management on Hyun Jeong-eun's Resignation as Hyundai Elly Director: "First Step Toward Normalization"

Recently, KCGI Asset Management evaluated the resignation of Hyun Jeong-eun, Chairwoman of Hyundai Group, from her positions as a registered director and chairperson of the board at Hyundai Elevator as "the first step toward normalizing the board of directors." On the 22nd, KCGI held an online press conference to announce this.

Hyun Jung-eun is the chairman of Hyundai Group. Photo by Dongju Yoon doso7@

In this regard, Hyundai Elevator plans to hold an extraordinary general meeting of shareholders next month to form a new board of directors and subsequently appoint a new chairperson through an extraordinary board meeting.

Last August, KCGI Asset Management sent an open shareholder letter demanding improvements in corporate governance, including the resignation of Chairwoman Hyun, the largest shareholder of Hyundai Elevator, from her position as an inside director. As of August, KCGI Asset Management holds approximately 2% of Hyundai Elevator's shares. They also stated regarding Hyundai Elevator's shareholder return plan that "there is no mention of fundamental measures to improve profitability," demanding fundamental improvements in management structure and normalization of corporate value.

KCGI Asset Management expressed concerns that Hyundai Elevator's board of directors' disposal of 2.97% of treasury shares to the employee stock ownership association in October could be misused to secure friendly voting rights for the largest shareholder and management. They also argued that Hyundai Elevator should cancel all of its currently held treasury shares, which amount to 7.64%.

On the 17th, Hyundai Elevator held an extraordinary board meeting to announce a board reorganization plan and shareholder return policies such as distributing more than 50% of net income as dividends or canceling treasury shares. Chairwoman Hyun also expressed her intention to resign as a registered director.

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