Shareholders Re-elect Hyundai Motor, SK Chiefs

Korea’s 209 listed firms including core subsidiaries of conglomerates such as Hyundai Kia Automotive Group, SK Group and LG Group held annual shareholders’ meetings on March 14.

At their respective general shareholders’ meeting, firms either reelected or newly appointed inside and outside directors. Those sworn in as a CEO pledged to overcome economic difficulties at home and abroad. Quite a few firms changed their articles of association in a bid to expand the existing business and advance into new areas.

Hyundai Motor Co. reelected Chung Mong-koo, chairman of Hyundai Kia Automotive Group, as its board member for another three-year term and elected Kim Gwang-nyeon, a lawyer of law firm Samhan, as its inspection commissioner-cum-board member.

In an operation report, Chung stressed, “Factors threatening Hyundai Motor include surging raw material prices, high oil prices, the global economic slowdown coming from the U.S. subprime mortgage loan crisis and Japanese and European carmakers’ with advanced technology as well as emerging Chinese and Indian producers.” He said that Hyundai Motor would secure measures in 2008 to cope with the future.

The National Pension Service, which had been against Chung’s reappointment, did not participate in the stockholders meeting.

Hyundai Mobis, a subsidiary of Hyundai Automotive Group, reappointed Kia Motor Corp. President Chung Eui-sun to the board. Also, it nominated its finance manager Choi Byeong-cheol as a board member and reelected Ha Myeong-geun, vice chairman of the Korea Federation of Textile Industries, and U Chang-rok, representative of law firm Yulchon, as outside directors.

In order to cut cost, Hyundai Mobis lowered its maximum wage for nine board members to 7 billion won, down from 10 billion won in 2007.

SK Energy reelected SK Group’s Chairman Chey Tae-won, whose term of office has recently expired, and Kim Jun-ho, president of CMS, as board member.

At the SK meeting, some shareholders protested against the recent crash in stock prices of more than 50 percent. After Vice Chairman Cho Jeong-nam resigned, SK Telecom reelected incumbent President Kim Shin-bae to be the sole representative director of the telecommunications firm.

Also, SK shareholders appointed SK Corp. President Park Yeong-ho as its new director, Uhm Nak-yong, professor of the Graduate School of Public Administration at Seoul National University, and Jeong Jae-yeong, professor at Sungkyunkwan University, to serve as outside directors and SNU’s business professor Cho Jae-ho as an inspection commissioner-cum-board member.

LG Electronics Inc. reelected its Vice Chairman Kang Yu-sik as inside director and newly appointed CFO Jeong Do-hyeon to the same director post.

In a briefing to shareholders, LG Electronics Vice Chairman Nam Yong said, “We’ll innovate our business structure while withdrawing from unprofitable businesses and expanding outsourcing. We’re planning to advance into future businesses including energy and healthcare.”

After the meeting, he told reporters, “We’re considering a takeover for growth. However, we have not thought of acquiring Hynix Semiconductor.”

KT&G appointed its executive directors Lee Gwang-ryeol and Min Yeong-jin, whose terms of office have expired, as board directors and SNU’s business professor Lee Chang-woo as an outside director.

Notably, Warren Lichtenstein, whose term of office would expire in March 2009, announced his determination to resign. Lichtenstein, managing director of Steel Partners, had been pitted against KT&G since he urged the firm to enhance shareholders’ value. He successfully became an outside director of the tobacco company through voting in a stockholders meeting in March 2006.

Asiana Airlines elected Chung Chang-young, former president of Yonsei University, as outside director and reelected Park Chan-bup, Kumho Asiana Group vice chairman and CEO, as board member.

The airliner, which is currently listed on the tech-heavy KOSDAQ market, passed a bill to join the KOSPI late this month.

KTF reelected SNU’s business management professor Kim Yeong-jin, whose term of office is scheduled to expire soon, as inspection commissioner-cum-board member.

KT’s incumbent planning directors Seo Jeong-su, whose term of office as non-standing director will expire soon, and Kiyohito Nagata, managing director of NTT DoCoMo, were reappointed to their post.

Some of the conglomerates showed brisk moves to secure new growth engines.

LG Electronics decided to nurture new renewable energy businesses in order to expand LG Group’s solar energy business.

SK Telecom also announced that it would participate in electronic banking and film industries and expressed its stern determination that it would strengthen e-commerce and film distribution businesses.

bae2150@donga.com