[Infostock Daily= Reporter Park Hyo-sun] KB Financial Group Chairman Yoon Jong-kyu has been confirmed to serve three consecutive terms and KB Kookmin Bank President Huh In has been reappointed. On the other hand, the agenda for the appointment of outside directors recommended by the employee stock ownership association by exercising its shareholder proposal rights was rejected.
KB Financial Group approved two cases, including △the appointment of Yoon Jong-kyu as an in-house director, and △the appointment of Huh In, president of KB Kookmin Bank and other non-executive director, at an extraordinary shareholders' meeting held at KB Kookmin Bank's Yeouido headquarters in Yeongdeungpo-gu, Seoul on the 20th.
The appointment of outside directors for Yoon Soon-jin, a professor at Seoul National University's Graduate School of Environment, and Ryu Young-jae, CEO of Sustinvest, recommended by the employee stock ownership association, was rejected.
At the shareholders'meeting, △the agenda for Chairman Yoon's appointment of an in-house director(3 consecutive terms) received an approval rate of 73.28% compared to the total number of pre-voting shares and an approval rate of 97.32% compared to the number of shares present, and △the agenda for Kookmin Bank President-designate Huh In's second term as other non-executive directors was also approved as originally proposed, with a 73.37% approval rating compared to the total number of shares issued and a 97.45% approval rating compared to the number of shares present.
In the case of the 2nd proposal recommended by Ryu Je-gang, the head of the employee stock ownership association, for recommendation of outside directors(Professor Yoon Soon-jin of Seoul National University Graduate School of Environmental and Professor Ryu Young-jae of Sustinvest), △the appointment of Professor Yoon Soon-jin was only an approval rate of 3.48% compared to the total number of shares issued, 4.62% compared to the number of shares present, and △the appointment of CEO Ryu Young-jae was only an approval rate of 2.86% compared to the total number of shares issued and 3.80% compared to the number of shares present. It was rejected.
In September, KB Financial Group's employee stock ownership association recommended Professor Yoon Soon-jin and CEO Ryu Young-jae, an environmental · social · governance (ESG) expert, as candidates for outside directors through shareholder proposals. This is because it is necessary to reinforce outside directors with expertise in the practical operation of KB Financial Group's 'ESG Committee' and to fulfill their responsibilities in the ESG sector.
However, ISS(Institutional Shareholder Service) and Glass Lewis, the world's two largest voting advisory bodies, advised shareholders to vote against the union's appointment of two candidates for outside directors. The Korea Corporate Governance Service(KCGS), the largest voting rights advisor in Korea, also expressed opposition.
On the other hand, Chairman Yoon Jong-kyu will lead KB Financial Group for three more years until November 2023 for three consecutive terms. President Huh In will also lead KB Kookmin Bank for another year by 2021.
When it was pointed out at the shareholders' meeting that day about 'self-serving consecutive terms', Chairman Yoon replied, "There was such a misunderstanding that I was excluded from the presidential nomination committee."
As for the future direction of KB Financial Group management, he said, "We will focus on the group's capabilities to No.1 financial group and No.1 financial platform companies, which are most loved by customers as lifelong financial partners," adding, "We will focus on innovating core competitive-based business models, innovating financial platforms that customers can use the easiest and fastest, expanding global expansion to secure sustainable growth engines, expanding social value creation through ESG management, and evolving into a creative and open organization."
Reporter Park Hyo-sun email@example.com