EGM Proposes Major Increase in Director Compensation Limit to 5B KRW, Changes to Retirement Pay, and Expanded Treasury Share Usage

EGM (June 18, 2026) proposes amending articles to increase director compensation limit from 2B KRW to 5B KRW (500%)
Executive retirement pay amendment: multiplier for registered executives (Vice President to Chairman) raised from 1.0 to 2.0, effective Jan 1, 2027
Treasury share article amendment: expands from share cancellation (up to 10% of issued shares) to holding/disposal for various purposes (employee compensation, ESOP, business objectives) subject to shareholder-approved plan
Previous AGM rejected the compensation limit; this EGM re-proposes it (agenda item 1-1, if passed, item 2 will not be presented)
Company holds high market share in domestic insurance (72.2% adoption) and credit card (75.0%) sectors, poised to benefit from AI/DX market growth
2026 domestic software & solution market forecast to grow 4.1% YoY to 7.18T KRW; global AI spending expected to increase 44.1% to $1,041.1B
Increased compensation limit and enhanced retirement pay raise potential cost burden, but expanded treasury share usage offers flexibility for shareholder returns and management
[AI Summary]This EGM agenda includes a 2.5x increase in director compensation cap (2B→5B KRW) and stricter retirement pay rules, posing potential cost risks; however, the treasury share amendment enables future buybacks and the company's strong position in the growing AI market provides a positive outlook, resulting in a mildly negative (bearish) overall assessment.