Hyundai Capital, First in Industry to Receive KCGS ESG Evaluation 'A+ Grade' for 3 Consecutive Years

Transparency in Governance, Securing Diversity, and Improving Practices Rated 'Excellent'

[Asia Economy Reporter Ki Ha-young] Hyundai Capital announced on the 8th that it has received an A+ rating for three consecutive years in the '2021 ESG Evaluation Governance' category announced by the Korea Corporate Governance Service (KCGS). Hyundai Capital is the first in the credit industry to receive an A+ rating for three consecutive years.

The Korea Corporate Governance Service is a leading ESG (Environmental, Social, Governance) evaluation organization in Korea that has been evaluating and publishing the sustainability management levels of listed companies and financial institutions in Korea annually since 2003.

In this year's evaluation targeting 950 listed companies and 111 financial companies (including 55 unlisted companies), Hyundai Capital received an A+ rating in the governance category for 2019, 2020, and 2021. The A+ rating means 'excellent' and is the highest rating among the evaluation results. Among unlisted financial companies, a total of nine companies received an A+ or higher rating in the governance category.

The governance category for financial companies evaluates the level of shareholder rights protection, board of directors, CEO, compensation, risk management, audit organizations and internal controls, and information disclosure.

Hyundai Capital was evaluated as having evenly improved governance practices in various areas such as efforts to establish ESG management in the board of directors, protection of shareholder rights, enhancement of the independence of internal control organizations, and overall improvement of disclosure practices. In particular, it specified regulations allowing the audit committee to hold meetings with external auditors without the attendance of management and made efforts to strengthen independence by composing the nomination committee entirely of outside directors.

A Hyundai Capital official said, "The evaluation result reflects that Hyundai Capital faithfully has the system presented in the Corporate Governance Best Practices." He added, "We will continue to improve the transparency and diversity of the board of directors and establish thorough internal control standards to enhance disclosure quality and governance."

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