LG Group is set to shift its listed affiliates to outside director-led boards this year, appointing independent directors as board chairs to strengthen oversight and transparency.
Major listed units are expected to name outside directors as board chairs through board decisions following shareholder meetings this week, according to industry sources on Monday.
The move is aimed at enhancing board independence and improving management transparency by separating the roles of CEO and board chair — a structure widely aligned with global governance standards.
Under this model, chief executives focus on business operations, while board chairs take on an independent oversight role, reducing potential conflicts of interest and strengthening accountability.
Several affiliates have already adopted the structure. LG Innotek and LG HelloVision introduced outside director-led boards in 2022.
More recently, LG Chem led the transition last month, followed by LG Display, LG Energy Solution and HS Ad.
LG Electronics on Monday named Kang Soo-jin, a professor at Korea University, as its first outside director to chair the board. Kang, who joined the board in 2021, also serves on the internal transactions, audit and ESG committees.
Other listed affiliates are expected to complete the transition within the month.
“Board chairs will be determined through each company’s board process,” an LG Group official said.
By Jie Ye-eun (yeeun@heraldcorp.com)
