KT General Meeting Electronic Voting Begins... Where Will Small Shareholders' Votes Go?

[Asia Economy Reporter Oh Su-yeon] Electronic voting began on the 13th ahead of the KT Annual General Meeting scheduled for the 31st. Attention is focused on the electronic voting sentiment of minority shareholders at this general meeting, where the appointment of Yoon Kyung-rim, President of KT Group Transformation Division, as CEO will be decided.

Electronic voting will continue until 5 p.m. on the 30th, the day before the general meeting. Shareholders can exercise their voting rights online.

[Image source=Yonhap News]

The agenda for this KT general meeting includes the appointment of candidate Yoon as CEO, reappointment of three outside directors, approval of the director remuneration limit, and partial amendments to the articles of incorporation including the addition of business purposes.

Among these, the appointment of the next CEO is the most notable agenda item. The ruling party has been demanding improvements in corporate governance and making numerous statements, and the largest shareholder, the National Pension Service (10.35%), is highly likely to cast a dissenting vote. The second-largest shareholder, Hyundai Motor Group (7.79%), is reported to have conveyed to KT that major agenda items should consider the intentions of the major shareholder. The third-largest shareholder, Shinhan Bank (5.58%), has not yet announced its position.

Attention is focused on the choice of minority shareholders, who hold about 57% of the shares. The political interference during the CEO appointment process caused the stock price to plummet, provoking outrage among minority shareholders. As a result, some minority shareholders have voiced support for candidate Yoon and even announced collective action. Currently, certification shots of completed electronic voting are being posted on the Naver cafe 'KT Jooju Moim' (KT Shareholders' Meeting).

With recent increases in electronic voting by institutional investors and minority shareholders, KT's electronic voting participation rate has risen from 4.34% in 2021 to 19.3% last year. The KT general meeting will be held at 9 a.m. on the 31st at the KT Research and Development Center in Seocho-gu, Seoul.