SK Group chief back in board room

Shareholders of SK Corp., the holding company of South Korea's No. 3 conglomerate SK Group, on Friday approved a proposal to appoint SK Group Chairman Chey Tae-won as its new board member.

Chey also took the title of chief executive officer for the company, heralding that the business mogul will come to the forefront of group management.

In 2014, the group chief stepped down from all key posts at the group's affiliates as he was convicted on charges of spending corporate funds for personal use. He was sentenced to four years in prison but was released with a special pardon last year.

The appointment came as the National Pension Service (NPS), the country's state-run pension fund, voted against the proposal, and the Institutional Shareholder Services, a global corporate advisory firm, also advised its clients to object. NPS is the second-largest shareholder in SK Corp. with a stake of 8.57 percent.

SK Group operates businesses in the telecommunications, chemical, tech and other sectors, taking third place behind Samsung and Hyundai Motor.

Public sentiment has become increasingly intolerant of misbehavior by members of family-controlled conglomerates, called chaebol, who hold a tight grip on business empires even after they are convicted of illegal activities. (Yonhap)