Sangjanghyeop Advisory Committee Opposes Shareholder Proposal for Introducing Cumulative Voting System for Coway, Soluem, and DI Dongil

The Governance Advisory Committee, an independent body affiliated with the Korea Listed Companies Association, announced on the 27th that it has decided to oppose shareholder proposals for the adoption of cumulative voting systems by Coway, SoluM, and DI Dongil.

Regarding Coway, the Governance Advisory Committee explained that the company is actively working to enhance shareholder value, such as using 40% of net profit for shareholder returns, and that the majority of outside directors on the board makes the necessity of adopting a cumulative voting system insufficient.

SoluM's board is also actively enhancing shareholder value, including the cancellation of 1 million treasury shares this month, and there have been no illegal activities such as embezzlement or breach of trust in the past three years, so the need to strengthen monitoring of the existing management through a cumulative voting system is considered low.

Meanwhile, the Governance Advisory Committee stated, "We oppose shareholder proposals for amendments to the articles of incorporation, such as granting the authority to cancel treasury shares at SoluM's general meeting of shareholders and introducing advisory shareholder proposals," adding, "These proposed amendments may violate the Commercial Act and are expected to have minimal contribution to improving shareholder rights, raising concerns about adverse effects compared to practical benefits."

In the case of DI Dongil, it is expected that management transparency will be enhanced through governance improvements such as the establishment of an Ethics Management Committee and an Audit Committee at the general meeting of shareholders. The proposal to introduce electronic voting was supported as it would improve convenience in shareholder participation and increase shareholder benefits.

The Governance Advisory Committee explained, "We positively evaluate Coway and SoluM's shareholder return policies and DI Dongil's governance improvement policies," and "We recommend supporting the remaining agenda items."