J&J Asset Management Seeks Board Overhaul at Daeho AL

J&J Asset Management filed proposals to remove most of Daeho AL’s directors and auditors and nominated seven replacement board candidates ahead of the company’s June 11 shareholders meeting. The filing targets current chief executive Kim Yong-muk for removal while excluding co-chief executive Yuk Yeong-su from the proposed dismissals. One nominee has been proposed as interim chair. J&J became a shareholder after participating in a KRW10 billion capital injection completed in 2025.

The Daeho AL board has approved a slate of shareholder resolutions for the June meeting that will affect nine board and audit positions. Company management has submitted its own package of proposals, which includes governance reforms, the appointment of new independent directors and changes to audit oversight. In a remediation plan filed with the Korea Exchange, Daeho AL outlined measures to strengthen internal controls, reduce the influence of existing major shareholders and pursue a KRW20 billion capital raise by October 2026.

Daeho AL’s shares have been suspended from trading since March after an auditor issued a disclaimer of opinion and allegations emerged accusing former managers of embezzlement and breach of trust. Regulatory reviews related to the company’s listing status are ongoing.

The shareholder register is fragmented: the largest shareholder controls just over 8% of outstanding shares. Proxy solicitation activity is underway and groups of retail investors are coordinating voting through shareholder advocacy platforms. Some investors are exploring options that would not place control exclusively with the current management team or with J&J Asset Management.

The June 11 vote will determine which candidates fill the contested board and audit seats and will affect the composition of the board, the proposed capital raise and the company’s remediation actions while regulatory review continues.