Koo Kwang-mo, chairman of LG Group, is not expected to continue serving as chair of the board at the holding company, LG Corp. The change comes as LG Group shifts starting this year to a "outside director chair" system under which the chairs of listed-company boards are chosen from among outside directors rather than inside directors. Since being appointed as CEO and chairman at an extraordinary shareholders meeting in June 2018, Koo has served as chair of the board.
According to the business community on the 23rd, LG Corp. plans to discuss an agenda to elect a new board chair from among outside directors at a board meeting to be held after the shareholders meeting on the 26th, replacing Koo. The measure was taken to strengthen the independence and oversight function of the board, thereby enhancing transparency in corporate governance and boosting shareholder value.
Earlier, LG Innotek and LG HelloVision in 2022 appointed outside directors as board chairs, bolstering board independence. Then in February, LG Chem outside director Cho Hwa-soon (professor of political science and international relations at Yonsei University), LG Display outside director Oh Jung-seok (professor of business administration at Seoul National University), LG Energy Solution outside director Park Jin-gyu (distinguished professor at the Korea University Corporate-Industry Cooperation Center), HS Ad outside director Kang Pyeong-gyeong (professor of business administration at Sogang University), and LG Electronics outside director Kang Su-jin (professor at Korea University School of Law) were each appointed as board chair.
The remaining listed companies are also expected to complete the process of appointing outside directors as board chairs through board resolutions after their shareholders meetings this week. An LG official said, "I understand the board chair will be decided through each company's board."