When Hana Financial Group (Hana) agreed to acquire Korea Exchange Bank (KEB) in 2012, significant tension and conflict arose between Hana and KEB’s labour union, which demanded job security and independent management of the bank. The union filed a lawsuit to block Hana’s acquisition of KEB and sued its president. Hana threatened to sue the union in return. We also noted that its board needed improvement, especially in respect of the independence and skill sets of its non-executive directors. Furthermore, we had concerns about executive remuneration.
Dr Christine Chow, Associate Director at Hermes EOS, reflects on the successful engagement with Hana.
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