Truston: "Lee Hojin, Former Taekwang Group Chairman, Should Return to Management as Non-Executive Director"

Truston Asset Management (Truston), the second largest shareholder of Taekwang Industrial, officially requested the convening of an extraordinary general meeting on the 25th to appoint Lee Ho-jin, former chairman of the Taekwang Group, as a non-executive director.

Earlier, on the 11th, Truston demanded the convening of an extraordinary general meeting for Lee Ho-jin's return to management as an inside director through an open shareholder letter. Taekwang Industrial stated that "due to Lee's health, a return to management is difficult."

In response, Truston proposed a return to management as a non-executive director. Although a non-executive director is non-resident, they are a member of the board of directors and participate only in board resolutions, engaging in management activities. Truston holds the position that since Lee is still working as a management advisor and has recently been involved in appointing the next top executive, his participation in management as a non-executive director would not be problematic.

Lee Sung-won, head of Truston ESG Management Division, stated, “On October 23 last year, the Taekwang Industrial board of directors had an in-depth discussion about Lee Ho-jin’s return to management, and at that time, all outside directors conveyed to the company that for smooth management decision-making, a full return to management rather than just a management advisor was necessary as soon as possible.”

Lee Sung-won added, “Since Truston and Taekwang Industrial discussed the method and timing of Lee’s return to management before and after the board meeting, it was understood that Lee also had the intention to return to management. Recently, all outside directors still believe that Lee’s return to management is necessary for Taekwang Industrial’s sustainable management.”

He further stated, “there is a need to confirm Lee’s true intentions regarding his return to management,” and emphasized, “Truston’s basic position is that Lee should participate in the board as a non-executive director and conduct transparent and responsible management activities, but if, as the company claims, Lee’s health has deteriorated to the point where even working as a non-executive director is difficult, then management should shift to a board-centered system based on the Commercial Act.”