Stride Partners Oppose HPO Board Nominee, Urge Appointment of Independent Audit Committee Member

Activist investment firm Stride Partners has expressed opposition to the candidate for audit committee member, Kim Gap-ho, recommended by the board ahead of the HPIO regular shareholders' meeting scheduled for the 31st.

On the 18th, Stride Partners launched an activist campaign aimed at enhancing corporate value, highlighting that Kim, who became the largest shareholder of Gold Pacific in 2019, was previously reported to the Securities and Futures Commission for allegations of financial statement manipulation and obstruction of external audits. Given his history of being reported to the Securities and Futures Commission, they judged it inappropriate for him to perform the audit role at HPIO.

They proposed, through a shareholder proposal at the general meeting, the appointment of lawyer Nam Jung-gu (representative of Inheon Law Firm) as an audit committee member to strengthen the independent monitoring function of management. It was pointed out that HPIO's current board structure fails to break away from representing the interests of specific shareholders, and the management oversight function is insufficient.

Lawyer Nam is a corporate legal expert who has handled numerous embezzlement and breach of trust cases at KOSDAQ-listed companies and also has advisory experience with venture and startup companies. He is regarded as a suitable candidate to enhance corporate value and board independence.

Stride Partners reiterated that some directors have a history of neglecting shareholder value destruction at other companies in the past, emphasizing that changes to strengthen board independence are essential.

Additionally, Stride Partners demanded that HPIO disclose and continuously implement a corporate value enhancement plan including share buybacks and cancellations, dividend expansion, and active IR (Investor Relations) activities.

Stride Partners also called for active participation from general shareholders. A Stride Partners representative stated, "We hope HPIO becomes a company that grows together with all shareholders, not just the largest shareholder and a few executives," and added, "We earnestly ask shareholders to exercise their valuable voting rights at this shareholders' meeting."