Shareholder activists get busy

As many as 58 listed companies, including Samsung Electronics Co., whose fiscal year ended in December are scheduled to hold shareholders’ meetings this week, and attention is expected to focus on firms experiencing conflict among shareholders over key management issues. On Wednesday, the number of shareholders’ meetings will peak at 35, and involves the Taekwang Industrial Co.
The Korea Corporate Governance Fund, advised by corporate activist and business administration professor Jang Ha-sung, bought a stake in the company last year and demanded improvements in corporate governance. By taking similar action in other companies the fund has boosted dividends. The Jang fund and Taekwang reached an accord to seat more outside directors and develop idle assets last year. The shareholder meeting on Wednesday will vote on implementation of the plan.
The fund recommended appointment of Junn Sung-chull, head of the Institute of Global Management, as a new outside director and Taekwang audit committee member.
In advance of the annual meetings, shareholders at SK Networks Co., Hyundai Merchant and Marine Co. and KCC are also warning they will oppose director nominations or reforms of articles of association. Also, groups of minor stockholders have been demanding improved corporate governance by companies including Youngchang Industries and Ilsung Pharmaceuticals Co.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]