Walter Cho Reappointed as Inside Director of Hanjin KAL... "The Launch of the Integrated Airline Is a Historic Task"

Serving Another Three Years Despite Opposition from the National Pension Service
"Aiming to Emerge as a Global Comprehensive Logistics Company"

Walter Cho, Chairman of Hanjin Group and CEO of Korean Air, has been reappointed as an inside director of Hanjin KAL, the group's holding company.

On March 26, Hanjin KAL held its regular general shareholders' meeting at the Hanjin Building in Jung-gu, Seoul, where the decision was made to reappoint Chairman Cho as an inside director. As a result, Chairman Cho will serve as an inside director of Hanjin KAL for the next three years.

The National Pension Service, which holds a 5.44% stake and had opposed Chairman Cho's reappointment prior to the shareholders' meeting, voted against the motion. However, in addition to the 20.56% stake held by Chairman Cho and his affiliates, supportive shareholders such as Delta Air Lines (14.90%) and Korea Development Bank (10.58%) voted in favor. A significant portion of minority shareholders, who hold 15.52%, also supported the reappointment, resulting in a 93.77% approval rate for Chairman Cho's reappointment.

The National Pension Service exercised its voting rights against the reappointment, citing Chairman Cho's "failure to fulfill his duty to monitor actions that damage corporate value or infringe on shareholders' rights and interests." However, Chairman Cho's side is said to have persuaded shareholders by emphasizing the importance of leadership in overseeing the final stage of the launch of the integrated Korean Air by the end of this year, thereby garnering support.

The National Pension Service also opposed the reappointment of Chairman Cho as an inside director at Korean Air's shareholders' meetings in 2021 and 2024 for the same reasons, but the reappointments were approved as a majority of shareholders present voted in favor.

In his remarks delivered by Vice Chairman Kyungpyo Ryu, Chairman of the Board of Hanjin KAL, at the shareholders' meeting, Chairman Cho stated, "This year will be a monumental one as the integration of our airline affiliates enters the stage of becoming a reality. Starting with the launch of the integrated airline, Hanjin Group will gradually restructure its group organization and do its utmost to firmly establish itself as a global comprehensive logistics company."

He added, "The launch of the integrated airline will mark a significant milestone in the history of Korean aviation and serve as a crucial turning point in providing Hanjin Group with a new engine for future growth."

Additionally, at the same shareholders' meeting, agenda items passed included maintaining the total directors' remuneration ceiling at 12 billion won, introducing electronic general shareholders' meetings, and amending the articles of incorporation to change the title of independent directors.