Hanjin KAL Co. CEO Seok Tae-soo has defended his board seat despite his close ties with Korean Air Lines Co. Chairman Cho Yang-ho. Shareholders of Hanjin KAL, the holding company of Hanjin Group, held a meeting in Seoul Friday to vote on the approval of financial statements and the appointment of board directors. The reappointment of Seok was passed by a majority vote of 65.46 percent, with 34.54 percent rejecting the motion.
The company’s investors also voted against the National Pension Service (NPS)’s proposal to amend articles to raise the bar on the qualification of directors. The state pension fund suggested that if an executive director is found guilty of embezzlement or breach of trust, his or her position will be immediately dismissed. The motion, however, failed to meet the two-thirds majority, winning only 48.66 percent of the vote.
While Seok’s reappointment is expected to work in favor of Chairman Cho, many speculate that Cho will maintain his influence on corporate management though his son Won-tae, president of Korean Air, will have to assume a greater role. “Chairman Cho will continue to operate as an unregistered officer of Korean Air and as an executive director of Hanjin KAL,” a Korean Air official said.
Do-Hyong Kim firstname.lastname@example.org