LG Electronics Establishes ESG Committee and Internal Transactions Committee to "Enhance Management Transparency"

LG Twin Towers in Yeouido, Seoul, where LG Electronics headquarters is located. / Photo by Mun Honam munonam@

[Asia Economy Reporter Kim Heung-soon] LG Electronics is establishing new ESG (Environmental, Social, and Governance) and Internal Transactions Committees within its board of directors. This move aims to accelerate ESG management and enhance the transparency of the company's governance.

According to LG Electronics on the 28th, the newly established ESG Committee, approved at the board meeting that day, will serve as the highest deliberative body for ESG management. It will establish fundamental policies and strategies in ESG areas such as environment, safety, social responsibility, customer value, shareholder value, and governance, and review medium- to long-term goals.

The ESG Committee will consist of five directors: four outside directors and LG Electronics President Kwon Bong-seok as an inside director. The chairperson will be appointed by the committee's resolution. To strengthen the expertise of the ESG Committee, LG Electronics plans to establish departments under the committee to support tasks in each field, including environment, society, and governance.

At the same board meeting, a plan to establish the Internal Transactions Committee on July 1 was also approved. The Internal Transactions Committee will review transactions subject to regulations against private interests under the Fair Trade Act, transactions with major shareholders and related parties under the Commercial Act, and internal transactions requiring board approval under laws, to ensure transparency in company management and fairness in transactions.

The Internal Transactions Committee will be composed of four directors: three outside directors and LG Electronics Chief Financial Officer (CFO) Vice President Bae Doo-yong as an inside director. The chairperson will be appointed by the committee's resolution. The Internal Transactions Committee will also have supporting departments under it.

Accordingly, the number of committees within the LG Electronics board has increased to five, including the existing Audit Committee, Outside Director Candidate Recommendation Committee, and Management Committee. Earlier, in March, LG Electronics introduced electronic voting for the first time at the shareholders' meeting to facilitate shareholders' exercise of voting rights. Additionally, Professor Kang Soo-jin of Korea University Law School, an expert in fair trade and law, was appointed as a female outside director.

This content was produced with the assistance of AI translation services.