Sangmidang Holdings will create a consultative body joined by chief executive officers of key affiliates to step up collaboration among affiliates and strengthen a system of accountable management.
Sangmidang Holdings said on the 25th it will launch the "Sangmidang Council" on the 1st of next month. CEOs of major affiliates will take part to discuss shared management tasks that affect the entire group and responses to changes in the external environment, and to coordinate collaboration plans among the companies.
CEOs of major affiliates such as Paris Croissant, BR Korea, and Samlip will join the council. Do Se-ho, president of Paris Croissant, will serve as the inaugural chair.
Under the council, Sangmidang Holdings plans to run sectoral subcommittees in areas that require collaboration and synergy, including external policy, communications, compliance, safety management, and mutual growth. Through this, it aims to advance the group-level management system and improve execution.
The existing "Change and Innovation Task Force," which has been run with internal and external Commissioners, will be reorganized around outside experts. The task force will provide objective review and advisory functions on major agenda items discussed by the Sangmidang Council, based on its independence and expertise.
The launch of this council is seen as an effort to clarify the roles between the holding company and the operating companies. Sangmidang Holdings will focus on group-level mid- to long-term strategy and investment, and on discovering new businesses, while each affiliate will strengthen a structure in which business execution and on-site management are the responsibility of each CEO.
Sangmidang Holdings has nominated Hur Jin-soo, vice chair of Paris Croissant and the eldest son of Chair Hur Young-in, as the new CEO. Going forward, Sangmidang Holdings will focus on the core roles of a holding company, including discovering future new businesses, managing the investment portfolio, establishing global growth strategies, and research and development (R&D).
Do Se-ho, chair of the Sangmidang Council, said, "We created the council to more systematically discuss common management issues across all affiliates and to strengthen synergies among the companies," adding, "Through the council, we will further systematize the CEO-centered accountable management system at each company and continuously strengthen management transparency."