National Pension Service and KCC Glass Selected as 'Public Focus Management Companies'... First Public Letter in 2 Years

Appropriateness of Executive Compensation Limits for Publicly Monitored Companies
First Public Letter in 2 Years Since 2022 Namseon Aluminum
"Possible to Exercise Voting Rights Against Director Appointment Proposals"

The National Pension Service (NPS) Fund Management Headquarters has designated KCC Glass as a 'Public Focus Management Company.'

On the 4th, the NPS announced a 'Public Letter to KCC Glass' on its website, sent under the name of Seowonju, Head of the Fund Management Headquarters (CIO). The recipient is the CEO of KCC Glass. The letter is titled 'Notice of Designation as a Public Focus Management Company.'

In the letter, the NPS stated, "As of December 31, 2023, the National Pension Service holds 1,216,873 shares (7.62%) of your company’s stock and, as a shareholder, we appreciate your efforts to enhance shareholder value." It added, "Throughout 2023, we engaged in private dialogues with your company; however, we have determined that the reasons for designating your company as a private focus management company have not been resolved." Furthermore, "The NPS has designated your company as a public focus management company concerning the appropriateness of executive compensation limits and intends to continue ongoing dialogues with your company throughout 2024."

The Fund Management Headquarters also stated, "We have posted the fact that your company has been designated as a public focus management company on the Fund Management Headquarters website and may exercise voting rights opposing agendas such as the appointment of directors and auditors at the shareholders' meeting." It added, "Nevertheless, if improvements related to the appropriateness of executive compensation limits are not made, the National Pension Fund Management Committee may pursue shareholder proposals and other active shareholder activities in accordance with the guidelines it has established."

Sending a public letter is one of the strongest actions the NPS can take. This is the first time in two years since 2022 that the NPS has sent a public letter to a specific company, which was then Namseon Aluminum regarding its dividend policy. The NPS first selects companies for private dialogue and expresses opinions on key management issues. If the situation does not improve, it escalates the designation to private focus management company and then to public focus management company.