Hanjin KAL, Korean Air parent company, has announced Walter Cho has been re-elected chairman by 57% of 3,600 shareholders who voted, with a collective equity stake of just under 85%, the company said.
Two other nominees, Sin-Bae Kim and Gyeong-tae Bae, had their nominations rejected. Reference material prepared by Hanjin KAL for the meeting describes Kim as a former chairman of SK Corp, while Bae is a former vice-president at Samsung Electronics.
Kim was nominated by a three-party alliance that has demanded that Walter Cho be replaced by professional managers. This alliance comprises Cho Hyun-ah, the private equity fund KCGI, and Bando Engineering & Construction, which hold 6.5%, 18.7%, and 16.9% stakes in Hanjin KAL, respectively, amounting to a collective 42% stake.
Walter Cho, his family members and affiliates hold a 22.2% stake, while Delta Air Lines recently increased its stake in Hanjin KAL to 14.9%.
