However, the banking group’s conflict with its labor union is expected to continue, with a proposal to introduce a new system where the labor union can propose an outside director rejected by shareholders. The issue drew a lot of attention as it would have given the labor union more influence on management decisions with a director to represent them. The system was backed by the National Pension Service, which is the largest stakeholder of the banking group with a 9.79 percent stake. The NPS is the largest stakeholder of a number of major Korean banking groups including Hana Financial Group, Shinhan Financial Group and Woori Bank, with a stake exceeding 9 percent. The labor union’s proposed system is also strongly favored by the Moon Jae-in government. However, during the shareholders’ meeting the system was denied after foreign investors, which control a 69 percent stake in the banking group,  voted against it on the grounds of protecting free management. Despite the labor union’s proposed system failing to win shareholders’ confidence, the union made it clear it is not retreating. “We have accepted the decision of the shareholders and we are withdrawing our proposal [today],” said Park Hong-bae, the banking group union representative. “We will again pitch our proposal during the regular shareholders’ meeting [in March] next year.”