Hyundai Development Company’s shareholders’ anger
“There is no internal audit or management discipline.
CSO, as an outside director expert” reprimanded
“Return of dividend income from Chairman Chung, the largest shareholder”
CEO Kwon Soon-ho apologizes for “a painful reflection”
Appointment of CEO Yoo Byung-gyu, etc.
HDC Hyundai Development Company, which caused two major accidents, is on the verge of extinction, and shareholders stand in line to enter the shareholders’ meeting held at the Conference Center of the FKI Hall in Yeouido, Seoul on the morning of the 29th.
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▲ A hot shotgun in a crisis of existence
HDC Hyundai Development Company, which caused two major accidents, is on the verge of extinction, and shareholders stand in line to enter the shareholders’ meeting held at the Conference Center of the FKI Hall in Yeouido, Seoul on the morning of the 29th.
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“Despite the catastrophe, no internal audit has been conducted. There was no disciplinary action against responsible management. But does it make sense in terms of independence and objectivity to appoint a chief safety and health officer (CSO) as an internal director to oversee safety management?”
“Is it true renewal and reflection that HDC Chairman Mong-gyu Chung, who has withdrawn from HDC Hyundai Development Company, receives billions of won in severance pay and dividends?”
At the ‘regular shareholder’s meeting’ held in Hyeonsan on the 29th at the FKI Hall in Yeouido, Seoul, shareholders reprimanded them for their responsibility for the large-scale damage caused by the collapse of the Hakdong redevelopment area and Hwajeong-dong accident in Gwangju.
The hottest topic on this day was ‘CSO Jeong Ik-hee’s appointment of an inside director’. CSO is the position of a safety general executive newly established by each company in accordance with the Serious Accident Punishment Act, which took effect this year.
One shareholder argued, “Inside directors should pursue corporate profits, but CSOs have to prioritize safety and quality management, so conflicts of interest arise. . Koh Young-ho, head of the Future Innovation Division, said, “I decided that a full-time executive director would be more helpful in overcoming the current difficulties. has been obtained,” he explained.
In particular, the severance pay and dividends of Chairman Chung, who voluntarily resigned after taking responsibility for the accident in January, also went up on the same day. Lee Jae-seung, chairman of the Hyunsan labor union, who participated as a shareholder, emphasized, “Chairman Jeong, the major shareholder, receives billions of won in dividend income and severance pay. . In response, Hyunsan CEO Kwon Soon-ho said, “(Return of severance pay and dividends) is a personal matter and cannot be forced on the company level.”
There was also criticism that there was no internal disciplinary action and no internal audit related to the recurrence of the accident. CEO Kwon explained, “The investigation and trial are ongoing, so it has been postponed because it may affect it.”
CEO Kwon Jeon, who started the general meeting, bowed his back 90 degrees, saying, “I will do my best to solve the accident with painful reflection and strict responsibility, and try to restore trust by trying to recover from trauma.” done. Despite the spread of COVID-19, 125 shareholders, five times more than usual, attended. This is due to the fact that the previous day, the Ministry of Land, Infrastructure and Transport requested the cancellation of the registration of the construction business, which drew the attention of shareholders as it was at a ‘crossroads to exist’.
At the general meeting of the day, ▲ Appointment of CEO Yoo Byung-gyu, CEO Ik-hee Jeong and CSO inside director ▲ Appointment of Professor Inso Kwon of KAIST as an outside director ▲ Establishment of a safety and health committee within the board of directors was approved, and recommendations for shareholders on environment, society and governance (ESG) were approved. The bill to be newly added to the articles of incorporation was rejected.
Reporter Baek Min-kyung
