Elliott Management is calling for 7 trillion won ($6.2 billion) in one-time dividend payments and seeking seats on the boards of the two South Korean companies to address what it calls excess capital and corporate governance problems.

Hyundai has made its own proposals on the dividend payments and board members.

Shareholders will vote on the Elliott and Hyundai proposals on March 22.

The NPS holds swing votes in the proxy contest because it is the second-biggest shareholder of Hyundai Motor and Hyundai Mobis, with stakes of 8.7 percent and 9.45 percent respectively.

In a statement it said Elliott's dividend proposals were "excessive" and the U.S. fund's director nominees would be opposed because of "conflict of interests."

The vote decision was made at a meeting of its panel of outside experts, after South Korea's leading proxy advisor, KCGS, recommended shareholders vote against Elliott's proposals.

Global proxy advisory firm International Shareholder Services has recommended that Hyundai investors elect some directors nominated by Elliott, while urging votes against the U.S. investor's dividend proposals.

(Reporting by Hyunjoo Jin; editing by Darren Schuettler and Stephen Coates)

Stocks treated in this article : Hyundai Motor Co, HYUNDAI MOBIS CO., LTD.