Allain "JB Financial, Must Guarantee Concentrated Voting Rights for Foreigners"

CEO Lee Chang-hwan Holds Press Conference in Yeouido, Seoul
"Possible to Appoint One Outside Director"

"In the voting rights exercise service, there are only options for approval and disapproval, but no entry field is provided for vote allocation, making it difficult for foreign shareholders to participate in cumulative voting. I hope JB Financial Group takes action."

Lee Chang-hwan, CEO of Align Partners Asset Management, is seen speaking at a press conference held at a cafe in Yeouido, Yeongdeungpo-gu, Seoul on the 27th. Photo by Yoo Hyun-seok

On the 27th, Lee Chang-hwan, CEO of Align Partners Asset Management, made this request to JB Financial at a press conference held in Yeouido, Yeongdeungpo, Seoul.

At the JB Financial Group shareholders' meeting held on the 28th of this month, the election of directors will be conducted under the 'cumulative voting system.' This system grants voting rights equal to the number of directors to be appointed, rather than one vote per share. For example, if five directors are to be appointed, each share is granted five voting rights. It is generally used as a mechanism to protect the rights of minority shareholders.

CEO Lee emphasized that foreign shareholders currently find it difficult to vote under the cumulative voting system with the existing system. He said, "The voting rights exercise system for foreign shareholders has not yet been revamped," adding, "As a result, only 20 to 60% of the shares held are recognized."

Accordingly, Align Partners argues that JB Financial should actively protect the rights of foreign shareholders, as was the case with KT&G in the past. KT&G proportionally adjusted the number of exercisable voting rights when the shareholder's intention could be reasonably inferred. He explained, "It is not JB Financial's fault, but I hope they respond for the sake of the company's image and shareholders."

When asked about the outcome of the shareholders' meeting, he explained that if directors are appointed, it would be the first case among domestic financial holding companies. He said, "With our current stake, it seems possible to appoint about one director, which would be a first for a financial holding company," adding, "To appoint two or more directors, 40% support from us is needed, which would be a meaningful result." He continued, "It would break down the fortress of the monopoly on executive nomination rights by management in widely held companies."

Align Partners is the second-largest shareholder of JB Financial Group, holding 14.04% of the shares. The difference from the largest shareholder, Samyangsa, and its affiliates, who hold 14.61%, is only 0.57 percentage points. Other major shareholders include OK Savings Bank (9.65%), the National Pension Service (6.61%), and foreign investor Capital Group (5.48%).

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