South Korea’s JB Financial Group said Thursday that it is against activist fund Align Partners’ demand for dividend expansion.

Align Partners, which holds a 14 percent stake in JB, is the financial firm's second-largest shareholder.

“In order to boost shareholder benefits in a sustainable way, excessive dividend expansion could hurt corporate value as well as shareholder interests,” JB said in a statement.

The latest announcement comes after Align Partners submitted a shareholder proposal last month to call for a raise in dividends payouts, citing JB’s upbeat performance last year. JB posted a net profit of 601 billion won ($455 million) last year, more than double that of 2018's 243.1 billion won.

It offered a cash dividend of 900 won per share, which increases the annual dividend payout ratio to 33 percent.

This proposal is 6 percentage points higher than JB’s earlier proposal of 27 percent, or 715 won per share.

JB added it is rejecting Align Partners’ request to appoint Kim Ki-seok, CEO of crowdfunding platform Crowdy, as a new outside director.

"Currently, outside directors are recommended through an independent executive candidate recommendation committee and should undergo a thorough and transparent review process,” the statement said.

“Because the proposed candidate did not go through a sufficient review process, it is difficult to evaluate his expertise and independency.”

JB said the financial decision on both issues will be made during the upcoming general meeting slated for March 30.