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KT&G shareholders reappoint CEO despite alleged fraud involvement

South Korean tobacco producer KT&G Corp. on March 16 said its shareholders voted to reappoint CEO Bok-in Baek for another three years.

Baek, 53, has been the company's CEO since October 2015, according to S&P Market Intelligence data.

The Nikkei Asian Review reported the same day that KT&G's second-largest shareholder, state-owned Industrial Bank of Korea, opposed Baek's reappointment due to his alleged involvement in an accounting fraud stemming from the company's acquisition of a 60% stake in Indonesia's cigarette maker Trisakti Purwosari Makmur in 2011. The bank said the reappointment will "hurt" the interests of all shareholders of the company.

The company's largest shareholder, the National Pension Service, gave up its right to vote for the reappointment, the report added.

The company said it also appointed Jongsoo Baek, former director of Busan District Public Prosecutor's Office, as an outside director.

This article was amended at 6:51 p.m. ET on March 22, 2018, to omit certain redundant details.