LG Innotek held the 43rd regular general meeting of shareholders at LG Seoul Station building on the 22nd and passed all five agenda items, including the appointment of CEO Jung Chul-Dong as an internal director. The agenda items were △ approval of financial statements △ partial amendment of the articles of incorporation △ appointment of directors △ appointment of members of the Audit Committee △ approval of remuneration limit of directors.
CEO Jung did not attend the meeting. The chairman of the shareholders was Chief Financial Officer (CFO) of Kim Jung-Dae. An official of LG Innotek explained, "CEO Jung could not come to the shareholders due to on-site management." The shareholders meeting was finished within only 22 minutes.
Since joining LG Semiconductor in 1984, CEO Jung has been the chief product manager of LG Display (CPO) and the head of LG Chemical Information & Electronic Materials business division. Last year, he moved to LG Innotek as the CEO.
Nyun-Chae Jung, LG's Electronics team leader, was newly appointed as a non-executive director based on the recommendation of the board of directors. Yoo Young-Soo, an internal director of HJ PnA Co., Ltd. and Sang-Chan Park, the dean of the College of Business, KyungHee University, were the candidates recommended by the Outside Director Candidate Recommendation Committee and were also appointed as outside directors. To note, Yoo Young-soo has been re-elected as an outside director.
A total of 309 shareholders, including delegate shareholders, attended the meeting. As of December 31, LG Innotek issued 23,666,107 shares and its total number of shareholders is 40,449. The shares with dual voting rights are 23,650,477 shares excluding 2,600 shares that are owned by the company. 309 shareholders (including delegated shareholders) attended the shareholders' meeting and 15,677,101 shares have voting rights. This corresponds to 66.3% of the total number of shares with voting rights. About 80 people actually attended the shareholders' meeting including company officials.
The 43rd dividend was set at 300 won per share. This is 50 won higher than the 42nd dividend of 250 won. It corresponds to 6% of the face value, the total dividend is 7.1 billion won. LG Innotek's sales last year grew 4.5% year-on-year to 7.98 trillion won and operating profit fell 11.1% to 263.5 billion won.
Kim Jung-Dae, managing director of LG Innotek, said, "In order to meet the expectation of profit shareholder return, we raised the dividend as noted in our disclosure in January. We decided the dividend at a reasonable level considering domestic and overseas conditions.”
There were some changes in the articles of incorporation. The modifications were to reorganize the relevant contents following the Amendments to the Act on External Audit of Corporations, etc., and Electronic Registration of Shares and Bonds. Park Sang-Chan has been appointed as an outside director of the Audit Committee. The limit of directors' remuneration for the 44th term (2019) is set to be 4.5 billion won, which is the same as the 43rd term. The subjected number of people is a total of 7 people including four outside directors, two in-house directors, and one other non-director.
Managing Director Kim said, "This year, despite the difficult business operation environment due to protectionism and rising raw material price, an opportunity factor does exist. We expect to create business opportunities in multi-camera, 3D recognition module for smartphones, and new electronic parts for automobiles." Also, he added, "We will enhance the business structure and strengthen the profit-centered business operations."