[Asia Economy Reporter Ki-min Lee] Professor Han-sang Lee of Korea University, who was recommended by CEO Hyun-sik Cho of Korea & Company as an outside director and member of the audit committee, stated on the 24th that "he is not intending to assist CEO Cho in the management rights dispute situation."
On the same day, Professor Lee wrote on Facebook, "CEO Cho did not propose it in that sense, and if it had been such a proposal, I would not have even considered it," and drew a line by saying, "I have no personal relationship with CEO Cho, and the two meetings related to this proposal are all the connection we have."
He added, "CEO Cho understands that it is an important task for companies to fulfill their social roles and responsibilities and to increase shareholder value, and in this regard, he was someone who felt burdened by the socially unfavorable views on the recent management rights dispute situation."
He continued, "I believe the board of directors should be at the center of promoting sustainable growth of the company through the best and highest decisions for all shareholders of the company, not as an agent working for himself or specific shareholders, and I think my independence was evaluated accordingly."
He also explained, "Rather than composing all board members through a nomination committee for outside directors related to the current management, it seems that they found someone who can independently and fairly handle the interests of all non-controlling shareholders on the board by utilizing the audit committee separate election system created through the amendment of the Commercial Act, and I agreed with this intention."
Furthermore, he stated, "If I am appointed as an audit committee member and outside director with support at the general shareholders' meeting, I will add my independence and expertise in accounting, taxation, and auditing, and thoroughly study and learn the relevant industry to share value with shareholders, stakeholders, and society through the company's sustainable growth."
On the same day, CEO Cho disclosed a shareholder letter through his legal representative proposing Professor Lee as an outside director and member of the audit committee of Korea & Company. He also announced that he would resign from the CEO position once the appointment procedure for Professor Lee is completed.
In the shareholder letter, CEO Cho stated, "By welcoming Professor Lee, I intend to fulfill my last duty as CEO and resign," and added, "Laying the foundation for the company's sustainable growth is the way to somewhat meet the expectations of the shareholders, and I want to fundamentally break the chain of controversies over the management rights dispute that could damage the company's reputation."
Professor Lee is regarded as an expert in corporate governance professionalism and independence. He is recognized as a domestic expert in external transparency and corporate value. He is evaluated to have played a role in raising corporate governance ratings from grade C to grade A while working at leading domestic companies.
The final agenda of Korea & Company's general shareholders' meeting, including the appointment of Professor Lee as an outside director and audit committee member, will be decided on the 25th. The shareholders' meeting is scheduled to be held at the end of March.
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