The KT&G shareholders' meeting scheduled for the 28th is being delayed by about an hour and a half past the original start time due to the attendance of more small shareholders than expected.
On the morning of the 28th, the 36th regular shareholders' meeting of KT&G was held at the Talent Development Center of the headquarters in Daedeok-gu, Daejeon. [Photo by KT&G]
KT&G is holding the shareholders' meeting at 10 a.m. at the Human Resources Development Center at its headquarters in Daedeok-gu, Daejeon, presenting about 30 agenda items including proposals from activist funds Anda Asset Management and Flashlight Capital Partners (FCP). Originally scheduled to start at 10 a.m., the meeting has been delayed by about an hour and a half until 11:28 a.m. due to the time taken to count the shares and number of shareholders present, as many small shareholders arrived early at the venue.
The agenda items include ▲approval of financial statements ▲partial amendment of the articles of incorporation ▲acquisition of treasury stock ▲increase and appointment of outside directors ▲appointment of audit committee members ▲approval of directors' remuneration limits, among about 30 items. Among these, the dividend amount and the appointment of outside directors are the biggest points of interest. Previously, Anda Asset Management and Flashlight Capital Partners (FCP) demanded dividends of 7,867 KRW per share and 10,000 KRW per share respectively from KT&G. The KT&G board had proposed a dividend of 5,000 KRW per share.
Regarding outside directors, the KT&G board recommended Kim Myung-chul, former CFO of Shinhan Financial Group, Ko Yoon-sung, professor at Hankuk University of Foreign Studies, and Lim Il-soon, former CEO of Homeplus. Anda Asset Management nominated Lee Soo-hyung, former chief judge of the Seoul Central District Court, Kim Do-rin, former executive director of Louis Vuitton Korea, and Park Jae-hwan, professor at Chung-Ang University. FCP proposed Cha Seok-yong, former CEO of LG Household & Health Care, and Hwang Woo-jin, former CEO of Prudential Life Insurance Korea.
As the current management and activist funds present agenda items simultaneously, significant changes in the company's management situation are expected depending on the shareholders' votes. If the dividend proposals and other items put forward by the activist funds pass, the available cash reserves will decrease, potentially causing difficulties in executing investment plans. The appointment of outside directors and the composition of the audit committee proposed by the activist funds are also likely to lead to a restructuring of the business framework pursued by the current management.
Meanwhile, prior to the shareholders' meeting, protests opposing the proposals from the activist funds were held. KT&G union members held a demonstration in front of the Human Resources Development Center that morning, demanding, "Immediately withdraw the shareholder proposals from speculative capital that only pursues short-term profits."
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