Share of Outside Directors from Business Sector Surpasses 20% for the First Time Among Top 30 Groups... Lotte Ranks First

Biggest Increase in Business Backgrounds Among Outside Directors
Nearly 48% of Lotte's Outside Directors Come from the Business Sector
High Proportion of Bureaucratic Backgrounds in Samsung-Affiliated Groups
Record-High Proportion of Female Outside Directors

Due to the amendment of the Commercial Act promoted by the government, the scope of directors' fiduciary duty has been expanded from the company to include shareholders. As a result, for the first time, the proportion of outside directors with backgrounds in the business community among the top 30 conglomerates has exceeded 20%.

According to an analysis by Leaders Index, a corporate analysis research institute, released on April 28, among 847 outside directors (including new appointments for 2024-2026) from 229 companies within the top 30 business groups by assets that have submitted business reports, the proportion of those with business backgrounds showed the highest increase.

The share of outside directors from the business sector rose from 16.4% (141 people) in 2024 and 19.2% (163 people) in 2025 to 23.3% (197 people) this year. It marks the first time that outside directors with a business background have surpassed 20%. By former employer, Samsung and SK each had the highest number, with 11 outside directors, followed by Hana Financial Group and Shinhan Financial Group (10 each), and Hyundai Motor and LG (7 each).

By group, Lotte Group had the highest proportion of outside directors from the business sector, with 29 out of 59 (47.5%) coming from business backgrounds, nearing half. SK Group also had a high proportion, with 31 out of 80 (38.8%) coming from the business sector.

Leadersindex

In contrast, Samsung, CJ, and Shinsegae—groups associated with the Samsung family—showed a high proportion of outside directors with bureaucratic backgrounds. At CJ, 21 of 28 outside directors (75%) were from the bureaucracy; at Shinsegae, 13 of 20 (65%); and at Samsung, 33 of 60 (55%). Among the 67 outside directors with bureaucratic backgrounds in these three groups, 20 were former members of the prosecution, judiciary, or the Fair Trade Commission.

Hyundai Motor Group and LG Group were notable for their academic backgrounds. At Hyundai Motor, 36 of 78 outside directors (46.2%) had academic experience, while at LG, 31 of 42 (73.8%) came from academia.

By area of expertise, the legal and policy fields accounted for the highest proportion this year at 28.2% (239 people). The proportion of those from technology and tax sectors also increased, from 14.8% (127 people) in 2024 to 15.1% (128 people) in 2025 and 16.5% (140 people) in 2026.

The share of female outside directors also reached an all-time high. Of the 122 newly appointed outside directors this year, 42 (25.0%) were women. Out of the total 847 outside directors, 197 (23.2%) were women, marking an increase in their proportion. Among female outside directors, those with academic backgrounds accounted for the largest share at 42.1%, followed by business backgrounds (26.4%) and bureaucratic backgrounds (16.2%).

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