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S. Korean Conglomerate Owners Maintaining Their Position as Inside Director
For Responsible Management
S. Korean Conglomerate Owners Maintaining Their Position as Inside Director
  • By Jung Suk-yee
  • February 24, 2017, 01:30
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The extension of Korean conglomerate heads’ term of office as the inside director is interpreted as a part for responsible management by the owner and head of the group.
The extension of Korean conglomerate heads’ term of office as the inside director is interpreted as a part for responsible management by the owner and head of the group.

 

According to the Financial Supervisory Service, Hyundai Motor Company Chairman Chung Mong-koo is expected to continue to serve as its inside director until 2020 through its shareholders meeting scheduled for March 17 this year. He is currently an inside director at the Hyundai Motor Group subsidiaries including Hyundai Mobis, Hyundai Powertech and Hyundai Engineering & Construction as well.

“The extension of his term of office is for responsible management by the owner and head of the group,” the automaker explained. At the shareholders meeting, his son and Hyundai Motor Company Vice Chairman Chung Eui-sun is likely to be re-appointed as an inside director of Hyundai Mobis, too. The vice chairman is also an inside director at Hyundai Motor Company, Kia Motors and Hyundai Steel.

Likewise, KOLON Chairman Lee Woong-yeul recently decided to extend his term of office as a registered director for another three years. He took office as the chairman back in January 1996 and has been responsible as the owner of the group for more than 20 years.

GS Group Chairman Huh Chang-soo, aged 70, was re-appointed as a registered executive of GS last year and is likely to be re-appointed as a registered director at GS Engineering & Construction this year. SK Group Chairman Chey Tae-won recovered his position as a registered director last year in spite of opposition from the National Pension Service. Samsung Electronics Vice Chairman Lee Jae-yong, who became a registered director of Samsung Electronics in October last year, is planned to keep his position in spite of his arrest.

Their move, which is supposed to be natural, stands out because some other conglomerate owners are not doing the same thing for different reasons. For example, Shinsegae Vice Chairman Chung Yong-jin has not been a registered executive at Shinsegae and E-Mart since 2013. Hanwha Group Chairman Kim Seung-youn and CJ Chairman Lee Jae-hyun retired as registered directors after judicial processes. The former cannot become a registered executive until 2021 without pardon and the latter has not been re-appointed for health reasons.