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Activist fund targets Korean Air as Seoul boosts investor powers

Chaebol under pressure to improve poor corporate governance

SEOUL -- Activist funds are targeting Korean Air Lines' parent company and South Korea's other family-run conglomerates, pressing them for better shareholder returns and improved governance in a sign that recent government moves to boost the power of minority shareholders are having an effect.

Korea Corporate Governance Improvement Fund, a local private equity fund, has become the second largest shareholder in Hanjin KAL, paying 135.7 billion won ($120.1 million) for a 9% stake. It ranks just behind Chairman Cho Yang-ho who owns 17.7%.

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