April 27, 2024

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(KT&G)

The National Pension Fund (NPF) has decided to vote in favor of a nomination for chief executive of South Korea's dominant cigarette maker, KT&G, at an upcoming shareholder meeting, according to the fund Friday.

Appointing a new chief executive, which would mark KT&G's first leadership change in nine years, and an outside director are two main agenda items for the company's annual shareholder meeting set for next Thursday.

A committee that monitors investments by the NPF held a meeting Thursday and decided to vote for KT&G's chief executive nominee, Bang Kyung-man, who has served in various capacities at the company since 1998, according to the fund.

The NPF also decided to vote for former judge Sohn Dong-hwan as a new board member of KT&G, it said. The fund holds some 6.2 percent stake in KT&G.

State-run Industrial Bank of Korea, which holds some 8 percent stake in KT&G, has opposed the nomination of Bang, citing falling profitability and dubious business practices during his tenure as a board member.

Sohn is a director candidate proposed by the state-run bank. (Yonhap)