Proxy Advisors ISS and Glass Lewis Support Jin Okdong's Reappointment as Shinhan Financial Chairman

The two leading global proxy advisory firms, ISS and Glass Lewis, have expressed support for all agenda items ahead of the Shinhan Financial Group shareholders’ meeting, including the reappointment of Chairman Jin Okdong.

Jin Okdong, Chairman of Shinhan Financial Group, is attending an individual final interview for reappointment at the headquarters in Jung-gu, Seoul, last December. Photo by Yonhap News

ISS, which had previously maintained a consistent opposition stance on matters such as the reappointment of outside directors, has shifted its position this time. Attention is now focused on how this change may impact the Shinhan Financial Group shareholders’ meeting scheduled for March 26, 2026. It is widely known that both domestic and international investors, especially foreign institutional investors, refer to reports issued by these proxy advisors before the shareholders’ meeting when exercising their voting rights.

According to the financial sector on March 11, ISS and Glass Lewis have recommended supporting the reappointment of Chairman Jin ahead of the Shinhan Financial Group shareholders’ meeting. In addition, they advised shareholders to approve other items such as the financial statements and the election of Kim Joseol, Bae Hoon, Song Seungjoo, Choi Youngkwon, Park Jongbok, and Lim Seungyeon as outside directors.

Regarding the extension of Chairman Jin’s term, ISS explained its support by stating, "Jin possesses the management capabilities demonstrated during the previous term, the expertise needed to maintain the group’s strategic direction, and no substantial legal or ethical issues have been found that would restrict his ability to serve as a director." Glass Lewis also commented, "We believe Chairman Jin’s reappointment aligns with enhancing shareholder value," and added, "He has ample experience to take the lead in the board’s strategic decisions and drive the group’s sustainable growth."

ISS, the world’s largest proxy advisory firm, had opposed the reappointment of the Shinhan Financial Group chairman in 2020, and repeatedly voiced opposition to the reappointment of six outside directors in 2021 and seven outside directors in 2022, maintaining a continuous stance against such proposals.

However, with ISS reversing its position and supporting Jin’s reappointment this time, there are growing expectations that the agenda will pass smoothly at the shareholders’ meeting. Currently, foreign ownership in Shinhan Financial Group stands at about 60%. Taking into account the employee stock ownership association (about 5%) and the founding shareholders who are Korean residents in Japan (about 15–20%), more than 90% approval is anticipated. The approval rate in 2023 was 88.72%.

A financial industry official commented, "This confirms the stability of Shinhan Financial Group’s governance structure and external trust in the board’s operations," and added, "Efforts to proactively reflect the discussions of the governance task force being pursued by financial authorities, such as replacing more than 20% of the board members, have received a positive evaluation."

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