Baek In-gyu Appointed to KEMCO Audit Committee with 81.8% Approval

[Financial News] KEMCO appointed Dankook University professor Baek In-gyu as an independent director who will serve on the audit committee at its extraordinary general meeting of shareholders on the 9th. The proposal to appoint Park Yu-kyung, recommended by Youngpoong and MBK Partners, was rejected. The two sides each secured two of the four independent-director seats, but KEMCO won the audit-committee seat, giving the board a 12–7 balance in favor of KEMCO and Chairman Choi Yun-beom’s side over Youngpoong and MBK Partners.
KEMCO held its 53rd extraordinary general meeting of shareholders at Mondrian Seoul Itaewon in Yongsan-gu, Seoul, that day and voted on the appointment of an independent director who would serve on the audit committee and four independent directors.
Baek’s appointment received 81.8% approval in the audit-committee vote. Park’s appointment received only 27.93% approval and was rejected after failing to meet the requirement of a majority of voting rights represented at the meeting.
The so-called “combined 3% rule,” introduced under the revised Commercial Act that took effect in July, was applied to the appointments. The system limits voting rights attached to shares exceeding 3% of the total number of issued shares with voting rights, calculated by combining shares held by the largest shareholder and specially related parties when appointing audit committee members at listed companies. As a result, the votes of ordinary shareholders and institutional investors became key variables. The National Pension Service (NPS) decided before the meeting to support both Baek’s and Park’s appointment proposals.
In the election of independent directors conducted under cumulative voting, KEMCO’s candidates Lee Hyung-gyu and Seo Eun-sook, and Youngpoong and MBK Partners’ candidates Shim Hye-seop and Lee Jun Bong, were each appointed. The two sides therefore secured two independent-director seats apiece.
With Baek additionally appointed as an independent director who will serve on the audit committee, KEMCO’s board expanded from 14 to 19 members. Based on the nominating parties, KEMCO and Chairman Choi’s side has 12 members, while Youngpoong and MBK Partners have seven.
KEMCO assessed the outcome as shareholders backing management continuity and efforts to enhance the company’s value over the medium to long term. A KEMCO official said, “We believe shareholders highly valued the achievements of the current management and its efforts to improve governance,” adding that the company would continue Project Crucible, its integrated U.S. smelter project, and the Troika Drive strategy.
Youngpoong and MBK Partners emphasized that the number of directors they recommended had increased to seven and called on Audit Committee Member Baek to demonstrate independence in accounting, auditing, and internal controls.
Youngpoong and MBK Partners said, “We will fulfill the necessary role to ensure that the newly formed board operates transparently and responsibly based on the long-term interests of the company and all shareholders, rather than the interests of any particular shareholder.” 

[email protected] Kim Mi-hee Reporter