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Photo: Korea Zinc |
[Alpha Biz= Kim Jisun] South Korea’s National Pension Service (NPS) is facing criticism after supporting board candidates opposed by major proxy advisory firms in an ongoing governance dispute at Korea Zinc.
The NPS’ Trustee Responsibility Committee said it will back four director nominees at the company’s annual general meeting on March 24, allocating part of its voting rights to a candidate recommended by Korea Zinc while also supporting nominees backed by MBK Partners and Young Poong. It will abstain from voting on key candidates supported by current management.
The decision contrasts with recommendations from seven proxy advisory firms, which advised against the MBK-backed candidates over concerns about representing specific shareholder interests.
Critics argue the move does not align with the NPS’ fiduciary duty. Labor representatives have condemned the decision, while industry observers also raised concerns over potential conflicts of interest, noting that some MBK-backed nominees hold multiple directorships.
Some analysts say the NPS may have failed to fully consider Korea Zinc’s strategic importance in national industries and global supply chains. The case is expected to fuel broader debate over the pension fund’s voting standards and accountability, as markets assess the implications of its decision.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
