Chaebol affiliates¡¯ Illegal voting

It was found that several chaebol-affiliated finance and insurance companies, including Samsung Life Insurance, Hyundai Securities and Ssangyong Fire & Marine, wrongfully voted at general shareholders` meetings with stocks held by affiliates, which have no voting rights.

On the 26th, the Fair Trade Commission unveiled the results of a probe into illegal voting that targeted 77 chaebol-affiliated finance and insurance companies.

Investigators found that 8 companies had committed such violations, and ordered appropriate punishments to be given to the offenders.

According to the Fair Trade Act, financial institutions affiliated with the top 30 business groups are not permitted to exercise voting rights on the stocks of affiliated companies. This regulation exists to prevent chaebols from expanding their affiliates or strengthening management rights with customer deposits.