KMH, Approval of Board Member Appointment... Joint Management with Keystone PE

330 Billion CB·BW Recalled to Meet Shareholder Demands
Management Consultative Body Formed by Both Sides
Additional Shareholder-Friendly Measures Under Review

[Asia Economy Reporter Lim Jeong-su] KMH announced on the 22nd that at the extraordinary general meeting of shareholders held on the same day, the agenda to appoint one inside director, two outside directors, two other non-executive directors, and one auditor was approved as originally proposed.

At this shareholders' meeting, the board of directors was formed following consultations conducted after reaching an agreement on joint management with Keystone Private Equity (hereinafter Keystone PE), the second-largest shareholder, last month.

Prior to this, KMH fulfilled shareholders' demands by redeeming 17 billion KRW of bonds with warrants (BW) and 16 billion KRW of convertible bonds (CB), which had been issued last year for emergency funding purposes, on the 11th.

A KMH official stated, "We decided on this course of action because we judged that ongoing fruitless disputes related to bonds do not benefit shareholder value," adding, "Through joint management with Keystone PE, we expect to enhance corporate value and promote mid- to long-term development so that KMH can grow in a more progressive direction than in the past."

In the future, a management consultative body composed of personnel from both sides will thoroughly review key policies such as management transparency, efficiency, and shareholder-friendly measures.

A KMH official said, "Through the management consultative body, we will discuss various ways to enhance company value, including shareholder-friendly policies that fit the company's current situation."