When all are rejected, only one outside director remains.
Hyundai Motor Group, the second-largest shareholder with a 7.79% stake in KT, plans to vote once morest the three existing outside directors who challenged for re-appointment at KT’s regular shareholders’ meeting on the 31st.
According to the automobile industry on the 29th, Hyundai Motor Group plans to oppose the re-election agenda of KT’s outside directors Chung-gu Kang, professor of electrical and electronic engineering at Korea University, Eun-jeong Yeo, professor of business administration at Chung-Ang University, and former CEO of KT Rental Pyo Pyo. As of December 31 last year, Hyundai Motors owns 4.69% and Hyundai Mobis owns 3.1% of KT, respectively.
KT’s largest shareholder, the National Pension Service (10.12%), is highly likely to vote once morest it as it has expressed dissatisfaction with the current board of directors who decided to reappoint CEO Koo Hyun-mo. ISS, the world’s largest voting rights advisory body, has already recommended once morest the reappointment of three outside directors.
If all re-appointment agendas are rejected, only one outside director, Kim Yong-heon, former secretary general of the Constitutional Court, will remain on the KT board of directors, whose term of office will expire or all executive directors will resign. However, in accordance with the Commercial Act, when a quorum (three members) cannot be met, an outside director whose term of office has expired or has retired may perform the duties until a new director is appointed.
Some are also talking regarding the resignation of reappointed outside directors. An outside director of KT told the Dong-A Ilbo on the 27th, “For now, the term of office ends until this shareholders’ meeting. We will make necessary decisions in a way that helps stabilize the company.”
Reporter Ji Min-gu warum@donga.com
