Aekyung Group Launches ESG Management in Full Swing... Establishes 'Governance Committee'

[Asia Economy Reporter Seungjin Lee] Aekyung Group announced on the 17th that it has launched a ‘Governance Committee’ within the board of directors to strengthen board-centered responsible management by appointing an outside director as the chairperson.

Aekyung Group’s holding company, AK Holdings, held an online board meeting that morning and resolved to appoint its first outside director as chairperson and establish a ‘Governance Committee’ to enhance the role and responsibility of the board regarding ESG management.

The Governance Committee, as an independent committee within the board, will perform expert review functions on major management matters affecting shareholder value and on enhancing transparency and efficiency in corporate governance. Through this, it aims to maximize corporate value and discuss areas related to the company’s ESG (Environment, Social, Governance) efforts.

The AK Holdings board plans to make prompt and efficient decisions through the Governance Committee’s deliberations, reviews, and discussions, which are characterized by expertise and independence. In particular, the Governance Committee will pre-review major management issues that significantly impact shareholder value and rights, discuss necessary matters to enhance corporate value, and report important issues to the board.

To ensure operational expertise and independence, the Governance Committee will be composed entirely of outside directors at its launch, with Lee Sang-min, a lawyer from Yulchon LLC, appointed as chairperson. Newly appointed Governance Committee Chair Lee Sang-min is a legal expert who has served as a Supreme Court judicial researcher, head of the Wonju branch of Chuncheon District Court, and vice chairman of the Anti-Corruption and Civil Rights Commission.

On the same day, AK Holdings submitted and resolved agenda items at the board meeting regarding the separation of the CEO and board chairperson roles and the establishment of a Corporate Governance Charter, which will be implemented immediately.

Accordingly, AK Holdings appointed outside director Lee Sam-gyu as its first outside director board chairperson. Newly appointed Chair Lee Sam-gyu is a financial expert who currently serves as an advisor at Yale Accounting Corporation and has held positions such as vice president of Korea Development Bank and senior vice president of Daewoo Securities.

An AK Holdings official stated, “We will continue to promote board independence, management transparency, and board-centered responsible management,” adding, “Chair Lee Sam-gyu is evaluated as the right person to lead governance advancement due to his financial expertise and deep understanding of the company through his experience as an outside director.”

Meanwhile, by complying with the ‘Aekyung Group Corporate Governance Charter’ to be established through the board, the group plans to lay the foundation for sustainable growth and practice ESG management. The main contents include ▲ shareholders’ rights and responsibilities and fair treatment ▲ board operation and directors’ duties and responsibilities ▲ audit committee and external auditors ▲ protection of stakeholders’ rights ▲ disclosure and market-based management monitoring.

Previously, Aekyung Group established ‘Internal Transaction Committees’ at major affiliates to build a fair trade self-compliance system within the group, supervising internal transactions and enhancing management transparency. The purpose is to promote fairness by improving transaction procedures through prior review of internal transactions and strengthening functions to pre-check for unfair transactions.

Currently, Aekyung Industrial, Jeju Air, and AK Plaza have already established and are operating internal transaction committees. Aekyung Chemical (to be integrated as Aekyung Chemical on November 1) organized an internal ‘Internal Transaction Review Team’ this year and plans to establish an internal transaction committee within the board in 2022.

Lee Seok-joo, CEO of AK Holdings, explained, “Aekyung Group is voluntarily responding to social demands related to governance from feasible aspects to practice realistic ESG management,” adding, “By appointing an outside director as chairperson and launching the Governance Committee, we plan to guarantee the board’s operational independence and enhance transparency and efficiency in major management issues and governance to maximize corporate value.”

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