Hedge fund J&J Asset Management has submitted proposals seeking the removal of most of South Korean aluminium products manufacturer Daeho AL’s current directors and auditors ahead of an upcoming shareholder meeting, according to a report by ChosunBiz.
The asset manager, which hold a 4.3% stake in Daeho AL, has also nominated a slate of replacement directors, signalling a broader effort to influence the company’s strategic direction.
Daeho AL has been under pressure since trading in its shares was suspended in March following an auditor’s disclaimer of opinion and the emergence of allegations relating to embezzlement and breach of trust involving former management. Regulatory reviews linked to the company’s listing status remain ongoing.
At a recent board meeting, Daeho AL approved shareholder resolutions for consideration at its next general meeting, including proposals affecting nine board and audit positions. Current co-chief executive Yuk Yeong-su was not included among the proposed dismissals.
J&J Asset Management became a shareholder in Daeho AL through participation in a KRW10bn capital raising completed in 2025. The firm’s proposals extend beyond former executives associated with the company’s past difficulties and include the removal of current chief executive Kim Yong-muk, who was appointed earlier this year as part of efforts to strengthen governance and address regulatory concerns.
The hedge fund has nominated seven candidates for board positions, including executives from investment, legal and corporate advisory backgrounds. One nominee has also been proposed as interim chair of the board.
Founded in 2002, Daeho AL supplies aluminium sheet and coil products and counts several major South Korean industrial groups among its customers. However, the company has faced increasing challenges in recent years following changes in ownership and heightened scrutiny of its governance practices.
The shareholder meeting scheduled for 11 June is expected to represent a key milestone in determining the company’s future leadership structure. Management has put forward its own proposals, including governance reforms, new independent director appointments and changes to audit oversight.
As part of a remediation plan submitted to the Korea Exchange, Daeho AL has outlined measures aimed at strengthening internal controls, reducing the influence of existing major shareholders and pursuing a KRW20 billion capital raise by October 2026 that could alter the company’s ownership structure.
The contest is taking place against a fragmented shareholder base. The company’s largest shareholder controls just over 8% of outstanding shares, creating the possibility that organised minority investors could exert significant influence over the outcome of board votes.
Industry observers report that proxy solicitation efforts are already underway, while groups of retail investors have also begun coordinating their voting positions through shareholder advocacy platforms. Some investors are said to be exploring alternatives that would place control of the company neither with the current management team nor with J&J Asset Management.
With Daeho AL’s listing status still under review and ownership widely dispersed, the forthcoming shareholder meeting is expected to provide an early indication of which stakeholder group may emerge with the strongest influence over the company’s future direction.
