Align Partners pushes for enhanced shareholder returns at JB Financial Group

Headquarters of JB Financial Group in Jeonju, North Jeolla Province / Courtesy of JB Financial Group

As the regular shareholder meeting season approaches, Align Partners, a prominent activist fund in the local market, has intensified its shareholder activism by recommending five candidates for JB Financial Group's board.

According to sources in the investment banking industry, Wednesday, Align Partners submitted a list of five board member candidates to JB Financial Group last week.

These candidates are recognized as experts in various fields, including governance, information technology, global investment and capital markets. Included in the list are two female and one non-executive director, a move that aligns with the financial watchdog's guidance on governance in the banking industry, issued last December.

Previously, JB Financial Group had opened the floor for its shareholders to propose candidates for non-executive director positions, allowing even those holding a single share to participate. The company accepted these nominations through its website until Jan. 5.

Currently, JB Financial Group's board comprises nine members: one executive director, one non-executive director and seven independent directors.

Align Partner's recommendation of director candidates to JB Financial Group is perceived as a tactic to ensure the implementation of the shareholder return enhancement plan. This plan, promised last year, is slated for review during the board meeting in February.

In January 2023, Align Partners publicly proposed to the seven listed banking financial holding companies in Korea, including JB Financial Group, the need for stronger shareholder returns. The proposal called for these companies to distribute dividends of at least 50 percent of their net profits.

At present, Align Partners is reportedly in discussions with the other six financial holding companies, urging them to implement the shareholder return enhancement plans announced last year.