[2023 Women's Forum] "Pursuing Global Board Gender Diversity... Boldly Appointing Female Talent"

Asia Economy Hosted '2023 Women Leaders Forum' Power K-Women Session
Advisor Lee Ji-yoon, Former Ewha Womans University Professor Kim Eunice, Lawyer Song Soo-young
Increase in Female Outside Directors After Capital Market Act Amendment... "Female Talents Actively Utilize Search Firms"

"Securing gender diversity on boards of directors is not only a matter of values such as gender equality but also a crucial business issue and a core task for companies aspiring for sustainable growth."

At the '2023 Asia Economy Women Leaders Forum' held on the 24th at Lotte Hotel in Sogong-dong, Seoul, female leaders in the field of women’s leadership expressed the necessity of expanding the number of female outside directors. Although the number of female outside directors in large corporations has increased since the revision of the Capital Markets Act (Act on Capital Markets and Financial Investment Business) last year, they agreed that the number is still not sufficient to have a strong voice.

Before the discussion, Lee Ji-yoon, Senior Advisor at FleishmanHillard, who presented on the topic of "Women’s Leadership from the Perspective of the Female Outside Director System," said, "In an environment emphasizing ESG (Environmental, Social, and Governance) management, corporate governance is becoming increasingly important," adding, "In particular, board diversity has recently emerged as a significant issue." Last year, the European Union (EU) announced that from June 2026, it will implement a quota system requiring listed companies to appoint at least 33.3% of their entire board and 40% of outside directors as women from underrepresented genders. According to Lee, this change is creating a global atmosphere where gender diversity on boards is increasingly emphasized.

At the '2023 Asia Economy Women Leaders Forum' held on the 24th at Lotte Hotel in Jung-gu, Seoul, panelists are discussing the topic 'Women Leadership Session: Female Outside Director System.' From the left, Jiyoon Lee, Advisor at FleishmanHillard; Eunice Kim, former Professor at Ewha Womans University Law School; Sooyoung Song, Attorney at Sejong Law Firm. Photo by Hyunmin Kim kimhyun81@

Accordingly, signs of change are also appearing domestically. The proportion of female outside directors among all outside directors in large Korean corporations has recently increased significantly, reaching 25% as of this year. Kim Eunice, former professor at Ewha Womans University Law School and chair of the discussion, said, "It is encouraging that many listed companies are appointing female experts as outside directors to meet the new standards, even though the revised Capital Markets Act does not include penalty provisions."

However, she pointed out the limitations of domestic companies by saying, "In contrast, many European countries such as France and Belgium have adopted strict quota systems, and countries with quota systems have female director ratios well above 30%." Song Soo-young, Deputy Director of the ESG Center at Sejong Law Firm and a panelist, also noted, "The proportion of female executive directors in unlisted subsidiaries such as banks and card companies, apart from listed financial holding companies, is understood to be even lower," adding, "This is because the Capital Markets Act regulations apply only to listed companies."

Ji-yoon Lee, Advisor at FleishmanHillard, is presenting on the topic of "Women Outside Directors System" during the Women Leadership session at the "2023 Asia Economy Women Leaders Forum" held on the 24th at Lotte Hotel, Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

Nevertheless, the panelists predicted that the proportion of female outside directors in Korea will continue to rise. Lee emphasized, "Securing diversity and inclusion is becoming a critical issue for sustainable corporate growth," and added, "High levels of diversity and inclusion positively affect financial performance." Deputy Director Song also said, "If companies directly or indirectly experience the benefits brought by board diversity, the proportion of female outside directors will naturally increase," expressing hope that "if legal systems, corporate awareness, and contributions from female board directors work in harmony, the ratio of female directors will further increase."

The female leaders said they feel more fulfillment than difficulty as female outside directors. Deputy Director Song said, "I was the first female outside director of Woori Financial Group and relatively young among financial holding company outside directors, so it took some time to adapt to the board atmosphere at first," but added, "I felt a sense of accomplishment when positive changes occurred in the company through important board decisions."

Lee also said, "In the past, when I was the only female director, it was difficult to speak up and everyone looked at me with curiosity," adding, "Currently, at Pulmuone, where I serve as an outside director, three female outside directors make up 40% of the board, so I do not particularly feel difficulties as an outside director."

The panelists reached a consensus on the need to expand the talent pool to discover female talents. Regarding the issue of "lack of prepared female director candidates," Deputy Director Song said, "The reality is that outside directors with diverse expertise are needed, and it is necessary to broaden the talent pool to include professors not only in business administration and accounting but also in various industrial fields," adding, "Excellent female talents are increasing."

Lee also emphasized, "There are many hidden 'gems' around who are qualified to be outside directors," and said, "It is necessary to boldly select and appoint female executives." Former Professor Kim added, "There are plenty of women with potential in our country," and said, "It would be good if women themselves use search firms more and if corporate requests increase."

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