“I am sorry that the majority shareholders are unable to unite.”
According to Hankook Tire & Technology on the 24th, CEO Cho submitted a proposal to the board of directors on the 5th, and said that he would resign from the position of CEO.
Cho seems to have decided to resign as a dispute over management rights between siblings arose due to an application for adult guardianship against his father, Yang-rae Cho, chairman of Korea & Company.
“It is difficult to deny the fact that our company has been receiving unfavorable attention for various reasons until recently,” Cho said in a letter to shareholders. He said, “I am very sorry for being the CEO and one of the major shareholders.”
He said, “Laying the foundation for the company’s sustainable growth is the way to meet the expectations of our shareholders.”
CEO Cho said, “By having Professor Lee as an outside director and a member of the Audit Committee, I will fulfill my last role as the CEO and resign. It is to lay the foundation for the sustainable growth of the company. I think it is the way to live up to it, and hope that this will also resolve the dispute over management rights.”
Professor Lee, recommended by CEO Cho, is an expert in accounting transparency and corporate value. He was invited to the Samsung Compliance Committee and advised on the direction of governance. In addition, Hankook Tire explained that as an outside director of a leading domestic company, it has led the corporate governance evaluation from C to A for two consecutive years.
The final decision on the shareholders’ agenda of Korea & Company, including Professor Lee’s appointment of an outside director and member of the Audit Committee, will be made on the 25th. The general shareholders’ meeting is scheduled to be held at the end of next month.
Hyunsik Cho, CEO of Korea & Company. [사진=한국앤컴퍼니 제공]
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