April 26, 2024

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[THE INVESTOR] Korea’s state pension operator said on Jan. 16 that it will decide in February whether to actively exercise its shareholders’ right over Korea Air and its holding firm Hanjin KAL.

The fund management committee -- the highest decision-making body of the National Pension Service -- said it will determine if it needs to wield its stewardship code and actively play a management role in the businesses riddled with a string of scandals.

The announcement was made during a meeting in Seoul earlier in the day.

In July 2018, the NPS introduced the stewardship code, a set of principles or guidelines aimed at getting institutional investors be actively engage in corporate governance to advance the interests of shareholders.

If the NPS opts to use its rights, it would mark the first time the code is actually used to influence the management of a company.

The NPS is the second-largest shareholder of the airline with a 12.45 percent stake and the third-largest stakeholder of Hanjin KAL, the holding company of Hanjin Group, with a 7.34 percent stake.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)