[THE INVESTOR] The Korean state pension operator decided on February 1 to actively exercise its shareholders’ rights to Hanjin KAL, the holding company of the country’s largest airline, Korean Air.
However, the fund’s management committee – the highest decision-making body of the National Pension Service – will not enforce its management code and will not make an active contribution to Korean Air, which has been criticized for scandals involving the family of its main shareholder.
The decision was made at a regular meeting held earlier today.
This is the first time that the pension operator has actually invoked the code, which can be used to influence management decisions.
In July 2018, the NPS adopted the Code, a set of principles or guidelines aimed at getting institutional investors to actively engage in corporate governance to advance the interests of shareholders.
NPS is the airline’s second largest shareholder, with a 12.45% stake, and the third largest shareholder of Hanjin KAL, the Hanjin group’s holding company, with a 7.34% stake.
The largest stake is held by Korean Air chairman Cho Yang-ho and members of his family, as well as those who have special relationships with the company.
By Ram Garikipati and the Newswires ([email protected])