Park Chang-gu Resigns as CEO of Kumho Petrochemical... Transition to Professional Management System (Comprehensive)
Chairman Park Chang-gu and CEO resign from registered director positions
Strengthening board-centric governance based on professional managers and outside directors
[Asia Economy Reporter Hwang Yoon-joo] Park Chan-gu, chairman of Kumho Petrochemical Group, is stepping down from his position as a registered director, including CEO of the group's main affiliate Kumho Petrochemical. He is also expected to resign from CEO positions at other affiliates such as Kumho Mitsui Chemicals. This move is interpreted as part of a governance restructuring following a management dispute with his nephew, Park Cheol-wan, and an effort to strengthen management centered on the board of directors.
On the 4th, Kumho Petrochemical held a board meeting and accepted the resignations of CEO Park Chan-gu and inside director Shin Woo-sung.
Kumho Petrochemical stated, "Chairman Park, having judged that the company’s management foundation has become solid, decided to voluntarily step down from his roles as CEO and registered director to open the way for professional managers."
Chairman Park is also expected to resign from CEO positions at other affiliates such as Kumho Mitsui Chemicals. However, he will retain his position as group chairman, with his future role and status to be discussed by the newly formed board of directors.
Meanwhile, following the resignations of inside directors Park Chan-gu and Shin Woo-sung, Kumho Petrochemical appointed Go Young-hoon, head of the central research institute and an expert in research and development (vice president), and Go Young-do, head of the management division and a finance and accounting expert (executive director), as new inside directors.
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Kumho Petrochemical plans to convene an extraordinary general meeting of shareholders on June 15 to approve the appointment of the new inside directors. The company stated, "We expect the newly appointed professional managers to collaborate with seven outside directors who possess independence and expertise to fulfill the company’s social responsibilities," adding, "We will enhance corporate value through sustainable and ESG management."
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