National Pension Service to decide whether to actively exercise shareholder rights over Korean Air
- 5 years ago
Trouble at Korea' flagship air carrier, Korean Air may have prompted one of its biggest shareholders to act.
The National Pension Service, which has more than an 11-percent share in the airline, is meeting today to decide whether to exercise its rights as a shareholder... following charges of embezzlement against an executive... and the infamous "nut rage" incident involving the chairman's daughter.
Our Ko Roon-hee is on the line for us with more.
Roon-hee, what's the latest?
Hi Jiyoon.
The National Pension Service on Friday will decide whether it will actively play a management role in Korean Air and Hanjin Kal, the holding company of Hanjin Group.
The pension service's Fund Mangagement Committee, chaired by the minister of health and welfare, is holding a meeting in Seoul as we speak... to decide if it needs to implement its stewardship role in the two companies.
This comes after the NPS introduced a stewardship code last July as a way of protecting its interests as a shareholder.
Things it could do as an active investor include suggesting the company dismiss current directors or limiting the executive status of a person who has negatively affected the company through embezzlement or breach of trust.
Currently, the NPS is the second-largest shareholder of Korean Air with a 11-point-5-6 percent stake and the third-largest stakeholder of Hanjin Group's holding company Hanjin KAL with a stake of 7-point-34 percent.
So...why was this meeting held in the first place? Why is the National Pension Service considering this intervention?
So this all comes after Hanjin Chairman Cho Yang-ho last year was indicted on charges of allegedly embezzling corporate funds.
Chairman Cho's daugher, Heather Cho, or the former Korean Air executive vice president, also earned bad reputation after the 'nut rage' incident in 2014.
South Korea's biggest institutional investor is the National Pension Service.
In fact, the state pension operator is investing more than 97-billion U.S. dollars in local stocks.
The NPS's active moves toward applying the stewardship code, are both raising expectations for shareholders' enhanced interest and worries about inappropriate engagement in business management.
That's all I have for now but I will bring more updates in our later newscast. Jiyoon?
The National Pension Service, which has more than an 11-percent share in the airline, is meeting today to decide whether to exercise its rights as a shareholder... following charges of embezzlement against an executive... and the infamous "nut rage" incident involving the chairman's daughter.
Our Ko Roon-hee is on the line for us with more.
Roon-hee, what's the latest?
Hi Jiyoon.
The National Pension Service on Friday will decide whether it will actively play a management role in Korean Air and Hanjin Kal, the holding company of Hanjin Group.
The pension service's Fund Mangagement Committee, chaired by the minister of health and welfare, is holding a meeting in Seoul as we speak... to decide if it needs to implement its stewardship role in the two companies.
This comes after the NPS introduced a stewardship code last July as a way of protecting its interests as a shareholder.
Things it could do as an active investor include suggesting the company dismiss current directors or limiting the executive status of a person who has negatively affected the company through embezzlement or breach of trust.
Currently, the NPS is the second-largest shareholder of Korean Air with a 11-point-5-6 percent stake and the third-largest stakeholder of Hanjin Group's holding company Hanjin KAL with a stake of 7-point-34 percent.
So...why was this meeting held in the first place? Why is the National Pension Service considering this intervention?
So this all comes after Hanjin Chairman Cho Yang-ho last year was indicted on charges of allegedly embezzling corporate funds.
Chairman Cho's daugher, Heather Cho, or the former Korean Air executive vice president, also earned bad reputation after the 'nut rage' incident in 2014.
South Korea's biggest institutional investor is the National Pension Service.
In fact, the state pension operator is investing more than 97-billion U.S. dollars in local stocks.
The NPS's active moves toward applying the stewardship code, are both raising expectations for shareholders' enhanced interest and worries about inappropriate engagement in business management.
That's all I have for now but I will bring more updates in our later newscast. Jiyoon?