“I looked at the board of directors and the shareholders’ meeting, but it was a problem
Does the CEO change every time the government changes?
Individual shareholders “downside price risk”
Businesses complain that excessive management intervention by the National Pension Service can prolong the corporate management vacuum and reduce corporate value. A business official pointed out: “The National Pension Service emphasizes the exercise of shareholder rights, but from the perspective of other investors, the risk increases that each company’s chief executive could be replaced at any time.” .
The active reorganization and personnel management of KT and POSCO, targeted by the National Pension Service, has been practically suspended. It is known that KT originally planned to complete organizational reorganization and personnel reshuffle within the year on the premise of CEO Koo Hyun-mo’s reappointment. However, as the question of whether or not to extend the deadline has become contentious, we are falling into a “lack of leadership” situation where CEOs and affiliate executives are lagging behind. Active investment judgment or decision-making is inevitably difficult. A KT official said, “I can’t help but remember that most of the company’s bosses went down the road of dishonorable resignations after privatization 20 years ago.”
Posco Group chairman Choi Jeong-woo, whose second term was confirmed in March, is also receiving calls for his resignation from political circles and civic groups regardless of the board’s decision. The former presidents of the POSCO group, which was privatized in 2000, have resigned without exception whenever the government has been replaced. The largest shareholder in POSCO Holdings, the POSCO Group holding company, is the National Pension Service, which has an 8.5% stake.
On the 27th, President Choi only carried out a small personnel reshuffle by replacing the chairmen of two major affiliates, and postponed the follow-up regular executive personnel to January next year. Externally, it is explained that Pohang Steelworks is recovering from the typhoon damage, but insiders say that “the draft towards President Choi is not fading and it is not an environment for active greetings.”
Financial groups are also concerned. National Pension Service is the largest shareholder of KB Financial Group (7.94%), Shinhan Financial Group (8.49%) and Hana Financial Group (8.4%), and is also the second largest shareholder of Woori Financial Group (7.86%) and BNK Financial Group (9.19%). In particular, within Woori Financial there is a state of great confusion as the government has expressed negative opinions on the reappointment of the president of Woori Financial Group Son Tae-seung, whose mandate will expire in March next year. Normally, in the last year of the president’s term, the Executive Nominees Recommendations Committee decides whether to reappoint or replace the president, and the Branch Representative Director Nominees Recommendations Committee meets to decide on the branch’s chief executive officer. affiliate. However, as Chairman Sohn’s decision to move forward was postponed until January next year, the nomination committee’s timing was delayed. Among the four major financial holding companies in Korea, Woori Financial Group is the only one that has not finalized the appointment of the chief executive officer of its subsidiaries.
A senior financial sector official pointed out: “As economic uncertainty is expected to increase next year, it is not enough to prepare a team to respond as soon as possible, but there are concerns about a decline in company value due to a lack of leadership”.
Reporters Lee Sang-eun/Kang Kyung-min/Park Sang-yong [email protected]
