TU-TESL

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Mobis, a subsidiary of Yonhap, said it would choose an outside director on Thursday to boost the value of its shareholders, Yonhap reported. Mobis is Hyundai's largest component manufacturing company and one of its core subsidiaries. Hyundai Mobis said in a statement that the company plans to select an external director from potential candidates through shareholder recommendation, and it will be responsible for protecting shareholders' rights and interests in the future. The company also said the move was aimed at enhancing transparency in modern governance structures and enhancing the value of its shareholders. Hyundai has tried this before. Last March, Mobis invited two foreign external directors, former Opel CEO Carl Thomas Newman and financial expert Brian Jones from the United States to join the board. Elliott, a US hedge fund, had previously criticized the company's dividend (distribution) plan and the appointment of board members. Elliott's criticism finally forced Hyundai to give up its attempt to reform its corporate governance structure. The company planned to make its executive vice chairman Zheng Yixuan succeed from his father, the former executive chairman Zheng Mengjiu. Last October Newman said Elliott had the right influence for Hyundai. But from a personal point of view, the hedge fund has taken a "very radical approach.". For example, it requires Mobis to pay 2.5 trillion won in dividends (distributions) for 2018. This amount is much higher than the dividend paid by Mobis in early 2019 for the next three years, which totaled 1.1 trillion won. Up to now, Elliott holds about 3% of modern Mobis. At the beginning of last year, Mobis announced that in the next three years, the company plans to pay dividends, buy back shares, and cancel shares worth a total of 2.6 trillion won in the next three years. It is understood that about 90% of Mobis' sales revenue comes from its subsidiaries and automobile companies. From January to September 2019, thanks to the increase in sales of electric vehicle parts, Mobis' net profit reached 1.71 trillion won, up 17% year on year.