LG Chem said on the 24th that its board of directors held a meeting and appointed outside director Cho Hwa-soon as chair of the board. This is the first time an outside director has been appointed as chair of the LG Chem board.
LG Chem said, "As part of efforts to improve governance, this decision separates the roles of board chair and CEO," and noted, "The independence of the board and management transparency will be further strengthened."
Chair Cho Hwa-soon, appointed as LG Chem's first female and outside director board chair, has served as an outside director since Mar. 2022 and is a professor of political science and international relations at Yonsei University and a full member of the policy division at The Korean Academy of Science and Technology (KAST). Based on expertise in science and technology policy and future governance, Cho provides management consulting to corporations.
As the board's representative, Chair Cho will decide agenda items to be submitted to the board, convene the board, and preside over meetings. Cho said, "I will work to meet shareholders' expectations by operating the board through responsible decision-making based on transparent governance and constructive communication."
The LG Chem board will also further strengthen communication measures to enhance shareholder value. It plans to prepare concrete communication measures, including governance meetings between the board—including outside directors—and shareholders, within this year.
At the LG Chem shareholders meeting to be held on the 31st of next month, agenda items are expected to include the appointment of President Kim Dong-choon—previously designated as the new CEO—as an inside director, approval of financial statements, approval of the limit on directors' compensation, and partial amendments to the articles of incorporation. Agenda items will also include the introduction of a recommendatory shareholder proposal suggested by activist fund Pelican Capital, a U.K.-based hedge fund, and the appointment of a lead independent director.