Trouble at Korea' flagship air carrier, Korean Air may have prompted one of its biggest shareholders to act.<br />The National Pension Service, which has more than an 11-percent share in the airline, is meeting today to decide whether to exercise its rights as a shareholder... following charges of embezzlement against an executive... and the infamous "nut rage" incident involving the chairman's daughter.<br />Our Ko Roon-hee is on the line for us with more.<br />Roon-hee, what's the latest?<br /><br />Hi Jiyoon. <br />The National Pension Service on Friday will decide whether it will actively play a management role in Korean Air and Hanjin Kal, the holding company of Hanjin Group.<br />The pension service's Fund Mangagement Committee, chaired by the minister of health and welfare, is holding a meeting in Seoul as we speak... to decide if it needs to implement its stewardship role in the two companies.<br />This comes after the NPS introduced a stewardship code last July as a way of protecting its interests as a shareholder.<br />Things it could do as an active investor include suggesting the company dismiss current directors or limiting the executive status of a person who has negatively affected the company through embezzlement or breach of trust.<br />Currently, the NPS is the second-largest shareholder of Korean Air with a 11-point-5-6 percent stake and the third-largest stakeholder of Hanjin Group's holding company Hanjin KAL with a stake of 7-point-34 percent.<br /><br />So...why was this meeting held in the first place? Why is the National Pension Service considering this intervention?<br /><br />So this all comes after Hanjin Chairman Cho Yang-ho last year was indicted on charges of allegedly embezzling corporate funds. <br />Chairman Cho's daugher, Heather Cho, or the former Korean Air executive vice president, also earned bad reputation after the 'nut rage' incident in 2014. <br />South Korea's biggest institutional investor is the National Pension Service.<br />In fact, the state pension operator is investing more than 97-billion U.S. dollars in local stocks.<br />The NPS's active moves toward applying the stewardship code, are both raising expectations for shareholders' enhanced interest and worries about inappropriate engagement in business management.<br />That's all I have for now but I will bring more updates in our later newscast. Jiyoon? <br />
