Korean Air chair reappointed to board despite NPS opposition

Korean Air Chairman Walter Cho survived opposition by the National Pension Service, the airline's second-largest shareholder, to return to the board of the company.

Korean Air Chairman Walter Cho speaks during an event in Incheon on March 14. [NEWS1]

Korean Air Chairman Walter Cho has been reappointed as a board member of the company on Thursday despite opposition from the National Pension Service (NPS), the airline's second-largest shareholder.

The appointment was approved at the annual shareholder meeting in southern Seoul on Thursday.

"The present year is a very important one for Korean Air as we earnestly prepare to launch as a merged carrier after finishing up the acquisition of Asiana Airlines," Cho said at the meeting.

"The merger of Korean Air and Asiana Airlines will be our major and long-term future growth engine."

The merger of the country's two largest carriers has so far received approval from 13 of 14 competition authorities, with only the United States remaining.

The merger process is likely to be completed by the end of the year, Korean Air said.

The NPS, which owns a 7.61 percent stake in the company, opposed Cho's reappointment, citing concerns regarding his "failure to monitor acts against the interest of shareholders."

The pension service also cited Cho's "excessive remuneration compared to performance" as an additional reason for its opposition.

Cho pocketed 3.92 billion won ($3 million), including a bonus of 640 million won, from Korean Air last year, up 64 percent on year.

BY SARAH CHEA [chea.sarah@joongang.co.kr]