KT&G CEO Appointment Uncertainty: Largest Shareholder Opposing

News by 2FIRSTS.ai
Mar.04.2024
KT&G CEO Appointment Uncertainty: Largest Shareholder Opposing
KT&G shareholders to vote on CEO nominee amid controversy over performance and shareholder dissent. Uncertainty looms over appointment.

According to South Korean media Koreatimes on March 1st, shareholders of KT&G are expected to vote later this month on the appointment of a new CEO candidate. The largest shareholder is opposed to the appointment, claiming that the candidate should be held responsible for the company's stagnant performance in recent years.

 

On February 22nd, the company appointed Senior Executive Vice President Bang Kyung-man as the final candidate for the position of Chief Executive Officer.

 

However, KT&G's largest shareholder, Industrial Bank of Korea (IBK), has decided to vote against Fang Jingman's appointment at the shareholders' meeting scheduled for March 28. In addition, the activist hedge fund Flashlight Capital Partners (FCP) has raised questions about the nomination process, creating uncertainty about whether Bang will be appointed as CEO at the meeting.

 

IBK, which holds a 6.93% stake in KT&G, recently stated that there are issues with the process of selecting nominees. An executive at IBK added that since the nominee for CEO was appointed as a senior executive vice president, the company's operating profit has decreased by over 20%.

 

The National Pension Service (NPS), which owns a 6.31% stake, is also expected to decide on the appointment of the CEO candidate at the shareholders' meeting on March 28.

 

In response to opposition regarding the appointment of the CEO candidate, KT&G stated that the selection process for the new CEO was conducted fairly, including the first time in 20 years that a candidate was chosen from outside the company. The CEO nominee also meets the criteria set by the company for the new chief executive officer.

 

The entire CEO appointment process has been conducted and guided by an independent external board committee. In addition, public recruitment is considered as one of the channels to form a pool of CEO candidates, providing a fair assessment opportunity for both internal and external candidates. Without the establishment of an advisory group composed of external experts, the fairness and objectivity of the appointment process have been ensured through the committee's impartial and objective viewpoints being taken into account.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Nevada Considers Nearly Doubling Tobacco Taxes, With $65 Million in New Revenue Expected From Expanded Nicotine Levies
Nevada Considers Nearly Doubling Tobacco Taxes, With $65 Million in New Revenue Expected From Expanded Nicotine Levies
Health groups in Nevada are urging lawmakers to nearly double the state cigarette tax and extend similar tax changes to other nicotine products, including e-cigarettes and nicotine pouches.
Jul.17
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA’s proposed foreign tobacco establishment registration and product listing rule remains unfinished, but Accorto told 2Firsts it reflects a shift toward structured oversight similar to medical device and pharmaceutical compliance frameworks. For Chinese and global e-cigarette suppliers, U.S. market access is moving beyond product authorization toward full-chain compliance covering manufacturing, documentation, import control, distribution, retail and marketing discipline.
Special Report
Jul.09
Maine Approves Vape Stewardship Bill Requiring Producers to Manage End-of-Life Devices
Maine Approves Vape Stewardship Bill Requiring Producers to Manage End-of-Life Devices
The Maine Legislature has passed LD 1519, a bill that would establish a producer-funded stewardship program for electronic smoking devices, requiring manufacturers and importers to manage the collection, transportation, recycling and disposal of end-of-life products, particularly disposable vapes containing lithium-ion batteries.
Jun.12
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
A former FDA toxicologist has questioned whether the agency fully assessed the material used in ZYN nicotine pouches before authorizing them for sale, raising concerns over possible microplastic exposure, according to STAT and The Examination.
Jul.16
UK Local Council Proposes £5 Refundable Deposit on Vape Devices
UK Local Council Proposes £5 Refundable Deposit on Vape Devices
Norwich City Council is set to debate a proposed vape deposit scheme that would require consumers to pay an extra refundable £5 per device at purchase, with the money returned when the device is handed back, as recent recycling-facility fires, including a major Widnes blaze reportedly very likely caused by a vape, draw greater attention to the risks of improperly discarded lithium-battery devices.
Jul.01
Malaysia Nicotine Vape Market Faces Legal Uncertainty Over Tax and Poisons List Ruling
Malaysia Nicotine Vape Market Faces Legal Uncertainty Over Tax and Poisons List Ruling
Malaysia’s Finance Minister Anwar Ibrahim said duties and taxes on nicotine-containing vape products will be determined in line with the Court of Appeal’s ruling on whether liquid or gel nicotine can be exempted from the Poisons List under the Poisons Act 1952, a case that could affect the legal basis for vape taxation, retail sales and future ban policy.
Jun.29