Lotte Card Increases Female Outside Directors to Two... Strengthening ESG Management

Published 18 May.2021 15:07(KST)

Among 5 Outside Directors, 2 Are Female Outside Directors, the Only Case in the Industry

Outside directors of Lotte Card, female outside director Bok-sil Lee (left) and outside director Su-jin Kim (right).

[Asia Economy Reporter Ki Ha-young] Lotte Card announced on the 18th that it has strengthened ESG (Environmental, Social, and Governance) management by increasing the number of female outside directors to two, thereby enhancing the diversity of its board of directors.

Lotte Card disclosed the status of its five outside directors through the Financial Supervisory Service's electronic disclosure system the day before. Currently, two of the total outside directors are women, and Lotte Card is the only company in the card industry with two female outside directors.

On March 30, through the regular shareholders' meeting, Lotte Card appointed Lee Bok-sil, president of the Korea branch of the World Women Directors Association, as an outside director and audit committee member. This is the second appointment of a female outside director following the appointment of Kim Su-jin, vice president of the Korean Women Lawyers Association, in 2019.

The newly appointed outside director graduated from the Department of Urban Administration at the University of Seoul and completed doctoral coursework at the University of Southern California's Rossier School of Education. After passing the 28th Administrative Examination, she served as Director of Youth and Family Policy and Vice Minister of Gender Equality and Family. She currently serves as president of the Korea branch of the World Women Directors Association (NGO). Her term as an outside director is two years, during which she will supervise and advise the company to ensure sound management from an independent position.

Outside director Kim Su-jin graduated from Korea University’s College of Law and completed graduate studies there, passing the 34th Judicial Examination. She has served as vice president of the Korean Bar Association, member of the Legal Ethics Council, member of the Appeals Review Committee, and legal advisor for KBS broadcasting. She currently holds positions as vice president of the Korean Women Lawyers Association and member of the Ministry of National Defense’s Defense Industry Technology Protection Committee.

According to the Capital Market Act, publicly listed companies with total assets exceeding 2 trillion won must not compose their boards exclusively of one gender. Although Lotte Card is not a listed company and thus not subject to the amended Capital Market Act, it increased the number of female outside directors to reflect the perspectives of women, who constitute a majority of its customers. As of April, women accounted for 65% of Lotte Card’s total members.

A Lotte Card official stated, "The appointment of female outside directors aims to enhance the diversity and transparency of the decision-making body by involving female experts with outstanding capabilities in various fields and to strengthen ESG management."