All of the management proposals including the dividend policy and board appointments put forward by Hyundai Motor Group were approved by its shareholders in the annual meeting on Friday, delivering a complete defeat to U.S. hedge fund Elliott Management which waged a proxy battle to push its own set of agendas.

Chung Eui-sun was also appointed as co-chief executive of Hyundai Motor Co., moving a step closer to taking over the helm of the auto empire from his 80-year-old father Chung Mong-koo.

The world’s largest activist fund has campaigned for better governance and increased shareholder returns from the conglomerate after announcing in April 2018 it owned a 3.0 percent stake in Hyundai Motor and 2.5 percent stake in the auto parts affiliate Hyundai Mobis Co.

Most recently, it pushed the two companies to increase their proposed dividend payout by nearly seven times – from 3,000 won ($2.65) to 21,967 won per share for Hyundai Motor and from 4,000 won to 26,399 won for Mobis – arguing they had too much excess cash compared with rivals.

Major proxy advisors including Glass Lewis and International Shareholder Services, along with Korea’s National Pension Service, had backed the automaker, saying that investment for future technologies was more important than lavish payouts.

Nearly 70 percent of shareholders from each firm ended up siding with the Korean companies in their dividend proposals.

Investors also struck down Elliott’s outside board member nominations and voted in favor of Hyundai Motor’s recommendations: Yoon Chi-won, vice chairman of UBS Wealth Management; Eugene Ohr, former partner at Capital International; and Yi Sang-seung, economics professor at Seoul National University.

Elliott’s demands to increase the number of Hyundai Mobis’ outside board members were also shot down.

Chung Eui-sun, who headed Hyundai Motor’s shareholders’ meeting, revealed intentions to launch eight new models this year – its most ambitious plan ever – in an effort to shore up its market presence by sprucing up its flagship models and developing more locally-tailored versions.

Hyundai Motor delivered one of its worst performances last year when its operating profit nearly halved from sharply declining sales in its major markets, mainly China and the U.S.

Shares of Hyundai Motor finished Friday down 0.8 percent at 123,500 won and those of Hyundai Mobis up 0.47 percent at 214,500 won.

By Moon Ji-woong and Kim Hyo-jin

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