[Asia Economy Reporter Kim Min-young] Major financial holding companies are filled with concerns about the upcoming regular shareholders' meetings scheduled in about a month due to the novel coronavirus infection (COVID-19). Since a large number of unspecified shareholders holding stocks are expected to visit the headquarters, there is a possibility that COVID-19 could spread to the main office.
According to the financial sector on the 26th, Shinhan Financial Group recently inquired with the Korea Listed Companies Association whether it is legally possible to restrict shareholders with mild fever detected through thermal scanners from entering the shareholders' meeting.
The association is a non-profit corporation established with listed companies on the Korea Exchange's KOSPI market as members, playing a role in protecting the rights of listed companies and investors.
Shinhan Financial plans to hold its shareholders' meeting around the end of next month at the auditorium on the 20th floor of its headquarters in Jung-gu, Seoul. Anyone holding even one share of the listed company can attend the meeting, and it is reported that about 200 to 300 shareholders attend annually.
With the spread of COVID-19, the influx of a large number of outsiders into the headquarters inevitably causes concerns about quarantine measures. Moreover, under the Commercial Act, the shareholders' meeting must be held by the end of next month, so postponing the meeting until the COVID-19 situation calms down is not an option.
The shareholders' meeting will be attended by Shinhan Financial Chairman Cho Yong-byeong and all CEOs of its subsidiaries. If a confirmed case attends the meeting, the worst-case scenario could unfold where all CEOs of Shinhan Financial must self-quarantine.
KB Financial Group will hold its shareholders' meeting on the 20th of next month at the KB Kookmin Bank Yeouido headquarters in Yeongdeungpo-gu, Seoul. Agenda items include reappointing President Hur In as a director and appointing new outside directors.
KB Financial Chairman Yoon Jong-kyu, who will chair the meeting, and subsidiary CEOs will all attend. KB Financial plans to send a notice to shareholders explaining that if they have a mild fever, they can express their opinions on the agenda through proxy voting.
They are also considering requesting shareholders to refrain from attending the meeting if a mild fever is detected through thermal scanners on the day of the meeting.
Hana Financial Group, which will hold its shareholders' meeting at the end of next month, will disinfect the inside and outside of the auditorium at its Euljiro headquarters in Seoul and provide infrared temperature detection cameras, hand sanitizers, masks, and thermometers to prevent the spread of COVID-19. While about 20 people including the holding company chairman, bank president, outside directors, and holding company executives have attended and answered shareholders' questions in the past, they are considering minimizing the number of participants for this meeting.
Woori Financial Group will hold its first shareholders' meeting since transitioning to a holding company structure at the end of next month. Woori Financial will also disinfect the meeting venue in advance and provide thermal scanners and hand sanitizers at the entrance on the day of the meeting.
Some voices suggest that if the COVID-19 situation prolongs, the government should consider postponing the timing of shareholders' meetings.
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