KB fails to introduce labor-backed non-executive director

Seen above is the entrance of KB Financial Group's regulor shareholders' meeting at its headquarters in Seoul, Friday. Yonhap

By Lee Min-hyung

KB Financial Group failed once again to appoint a non-executive director recommended by its labor union during its regular shareholders' meeting.

All eyes have been on whether the lender would be able to introduce a union-backed outside director for the first time in Korea after KB's union recommended as its outside director Kim Young-soo, former vice president of the state-run Export-Import Bank of Korea.

But shareholders of the nation's largest financial holding firm by market capitalization voted against the agenda, only allowing Gangnung-Wonju National University professor Choi Jae-hong to become the group's new non-executive director due to his digital expertise.

Kim failed to win the trust of shareholders. Earlier, the Institutional Shareholder Services, a proxy adviser, recommended KB shareholders to vote against the agenda of Kim taking on the role, casting doubt over whether his overseas financial expertise will offer a meaningful contribution to KB's foreign business expansion.

KB's union has recommended candidates for the group's outside director five times since 2017, including Kim. But they were all rejected by shareholders.

Woori Financial Group also held its regulator shareholders' meeting on the same day and approved a series of key agendas, including the appointment of Woori Bank CEO Lee Won-duk as its new non-executive director. Woori shareholders also voted in favor of Woori's decision to appoint Song Soo-young, a partner at law firm Shin & Kim, as its new outside director.

The financial firm also laid the foundation to ensure shareholder value. The company succeeded in changing part of its articles of association guaranteeing interim dividend offerings on a regular basis.

“The shareholders' meeting has enhanced our management structure by embracing gender diversity in the board of directors, while at the same time, setting up a basis for strengthening our shareholder return policy,” an official at Woori said.