Align Partners, which conducted an activist campaign against JB Financial Group, has succeeded in placing two directors on the board. This marks the first instance of a shareholder-proposed director being included in a South Korean financial company.
At the 11th regular shareholders’ meeting of JB Financial Group held at its headquarters in Jeonju, North Jeolla Province, on the morning of March 28, Align Partners announced that their shareholder-nominated candidate, Kim Ki-seok, secured the top position in the vote, while the shareholder-recommended candidate, Lee Hee-seung, secured the second position, both entering the board of directors.
Align Partners holds a significant stake in JB Financial, making it the second-largest shareholder with 14.04 percent ownership. The firm has been outspoken about governance issues and the undervaluation of the company’s stock. As a result, Align Partners has actively exercised its shareholder rights, which include nominating directors to the board.
However, Align Partners’ proposal to increase the number of non-executive directors from one to two was rejected. The company initially recommended a total of 5 external director candidates.
Align Partners has launched a comprehensive campaign since last year and continued it into this year. On March 26, the firm’s legal action to prohibit the exercise of voting rights on the mutual shares held by the fintech company, FinDa, was cited in court. Additionally, it appointed an auditor to ensure clarity in the procedures for convening shareholder meetings.
On March 27, Align Partners held a press conference in Yeouido, stating, “Foreign shareholders are unable to properly exercise their concentrated voting rights,” and emphasized, “JB Financial should take proactive measures regarding foreign shareholders’ exercise of voting rights.”