[종합] Kumho Petrochemical, Executive Vice President Chul-Wan Park puts out shareholders’ proposal’excluding dividends’

Kumho Petrochemical has posted on the agenda of the regular shareholders’ meeting, excluding the portion related to dividends among the shareholders’ proposals by Park Cheol-wan.

Kumho Petrochemical held the board of directors on the 9th and made an agenda for the ’44th regular shareholders’ meeting’ △Approval of financial statements and dividends △Partial amendment of the articles of incorporation △Appointment of internal directors △Appointment of outside directors and members of the Audit Committee △Appointment of members of the Audit Committee △Approval of the remuneration limit for directors has been confirmed.

Excluding the part related to dividends (dividends) among Park’s proposals to shareholders (changes in articles of incorporation, inside directors, outside directors, members of the audit committee), the rest of the contents were uploaded along with the contents of the company.

In the case of dividends (dividends), the court is currently undergoing a hearing on the legality of the shareholder’s proposal, and the company said that it was decided to follow the court’s decision later on whether the agenda was proposed.

Looking at each proposed agenda, in the approval of financial statements and dividends, common stocks are 4200 won per share (large shareholder 4,000 won) and preferred stocks are 4250 won per share, with a total dividend of 115.8 billion won. Considering the dramatic improvement in 2020 performance, it increased 180% from the previous year.

The differential dividend for the largest shareholders, which has been continuously being promoted since five years ago, has also increased by 33% from the same period last year.

In addition, the dividend payout ratio of 20-25% based on separate financial statements, which has been raised from the existing dividend policy, will be maintained for the next two to three years, and in line with the improved cash flow, the policy to increase dividends in addition to strategic investments for growth will be promoted.

Some changes to the articles of incorporation have prepared measures to improve the governance structure to lay the foundation for sustainable management and social value creation.

Inside the company, the EGS committee to increase the independence, transparency and rationality of the board of directors by separating the CEO and the chairman of the board as a key measure to ensure shareholder value-oriented board operation, and to manage ESG (environmental, social, governance) management performance, It was decided to establish an internal transaction committee to enhance transparency in transactions between affiliates and related persons and to monitor conflicts of interest, and a compensation committee to secure objectivity and transparency in the decision process for director compensation.

For practical independent operation, the committee plans to operate centered on outside directors.

On the other hand, as the proposal of Managing Director Park, it was proposed to appoint the chairman of the board of directors from among outside directors, and to establish an internal transaction committee and a compensation committee.

Kumho Petrochemical said that in the case of appointing an inside director, a more active ESG management strategy was prepared and a board composition plan was prepared to consider enhancing the expertise of the board of directors.

Inside the company, the current director of Kumho Petrochemical’s sales division, Baek Jong-hoon, was recommended as a candidate, and Park recommended himself as a shareholder proposal.

For the appointment of the Outside Directors and Audit Committee, the final candidate was selected by the Outside Director Candidate Recommendation Committee composed of all outside directors after comprehensively reviewing the diversity of each sector’s expertise and gender, including finance, ESG, accounting, and law.

Inside the company, a total of four candidates were recommended, including Lee Jeong-mi, a permanent advisor to the Law Firm Logos, Park Soon-ae, a professor at the Graduate School of Public Administration at Seoul National University, Choi Do-seong, a chair professor at Gachon University, and Hwang Yi-seok, a professor at the Seoul National University Business School.

Candidate Do-sung Choi and Lee-seok Hwang are candidates for the Audit Committee.

Meanwhile, four candidates were recommended as candidates, including former Boston Consulting Group Korea Office CEO Lee Byeong-nam, Dentons Lee foreign lawyer Min John K, Facebook Southeast Asia general manager Yong-beom Cho, and Ewha Womans University environmental engineering professor Choi Jeong-hyun. did. Among them, Candidate Byeongnam Lee and John K Min are also candidates for the Audit Committee.

Meanwhile, Park Chan-gu, chairman of Kumho Petrochemical, announced a new vision, including a sales of 9 trillion won in 2025.