Glass Lewis, ISS split on Kumho Petrochemical proposals

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Glass Lewis, ISS split on Kumho Petrochemical proposals

Published: 17 Mar. 2021, 18:19

Park Chul-whan, a senior vice president at Kumho Petrochemical, speaks at a press event in central Seoul last week. [NEWS1]

Glass Lewis, an American proxy advisory, sided with Kumho Petrochemical senior vice president Park Chul-whan in an ongoing dispute against the company’s chairman over management control.

Park, the largest shareholder of Kumho Petrochemical and the chairman’s nephew, on Wednesday said that he welcomes the recommendation made by Glass Lewis to support his shareholder proposal.

The recommendation arrived just a few days after International Shareholder Services, another proxy advisory group, recommended shareholders vote "no" to the resolutions Park proposed.

Park’s proposal includes recommending himself as an executive director of the company and raising the dividend almost 10-fold, which ISS said was too aggressive.

“Shareholders would be best served by electing him to the Company’s board of directors at this time,” said Glass Lewis, according to Park.

Glass Lewis said Park will be able to raise shareholder value and improve corporate governance as well as financial capabilities under Park’s leadership as an executive director, according to a press statement released by Park.

On the same day, Park argued that the company’s management team has been “illegally offering ginseng gift sets” in return for asking them to vote in favor with the board, calling such an act “unethical.”

The company's shareholder meeting is scheduled to take place on March 26.

BY JIN MIN-JI [jin.minji@joongang.co.kr]