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Hyosung Group Chairman Cho Hyun-joon and CEO Cho Hyun-sang have both been reappointed during a general shareholders meeting held at the company's headquarters in Seoul, Friday, despite the National Pension Service (NPS), a major stakeholder of the firm, voting against them.
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| Hyosung Group Chairman Cho Hyun-joon |
According to Hyosung Group, the three major agenda items for the meeting ― financial statements, appointment of executives and setting their wage limits ― were approved during the meeting.
The reappointment comes despite strong opposition from the NPS, which deemed the chairman unfit as he has a history of damaging the company's reputation and value, as well as being negligent in company affairs. The NPS has a nearly 10 percent stake in Hyosung.
The NPS has been seeking a greater say in companies it has invested in and has influence over many listed firms as it is by far the largest institutional investor in the country, and the third-biggest pension fund in the world.
The Korean Public Service and Transport Workers' Union (KPTU) along with civic groups held a press conference in front of Hyosung's headquarters earlier in the day, urging shareholders to reject Cho Hyun-joon as chairman, as he is embroiled in cases related to embezzlement of company funds as well as professional negligence. They called for a major personnel restructuring at the company to strengthen transparency.
"The two candidates have had a negative impact on the company's share price due to their involvement in illegal acts as well as unethically holding numerous executive posts in company affiliates. They are unsuitable for the posts, especially Chairman Cho Hyun-joon, whose re-appointment needs to be rejected," the union said.
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| Hyosung Group CEO Cho Hyun-sang |
The NPS's opposition played little role in the voting as Chairman Cho and his family own nearly 55 percent of the company's shares
The company claimed that Cho's leadership in recent years has contributed to the success of the firm.
Last year, Hyosung Group recorded sales of 18.1 trillion won ($1.14 billion) and an operating profit of 1.102 trillion won.
"The chairman's administrative capabilities have been verified and he has led the growth of Hyosung Group's global business," a company official said. "He has contributed to changing the firm to a more customer-centered business as well as strengthening administrative responsibility. Through his leadership, we expect to secure the trust of customers, shareholders and the market."
