Hanwha Group is significantly expanding the appointment of independent directors as board chairs to further strengthen board transparency and independence, protect shareholder interests and enhance corporate value.
The group said Hanwha Corp.'s board appointed independent director Kwon Ik-hwan as its chair on the morning of Oct. 14, following Hanwha Solutions, which has had an independent director as board chair since 2024.
Kwon is a legal expert who graduated from the 22nd class of the Judicial Research and Training Institute and has served as planning and coordination office chief at the Ministry of Justice, chief prosecutor of the Daejeon District Prosecutors' Office and chief prosecutor of the Seoul Southern District Prosecutors' Office.
Since joining Hanwha Corp.'s board in 2022, he has provided advice on various aspects of the company's management. He has also contributed to fostering a transparent and rational management environment by serving as chair of the board's related-party transactions committee and as a member of the audit committee and the environmental, social and governance (ESG) committee.
Hanwha Systems and Hanwha Ocean have also decided to appoint independent directors as board chairs and are currently working through the relevant procedures. Both companies plan to complete the appointments by next month, following board resolutions and other required steps.
In addition, the group aims to appoint independent directors as board chairs at its affiliates by the first half of next year, after making some adjustments to board composition in response to changes in the external environment, including the implementation of amendments to the Commercial Act.
Hanwha Group will also introduce institutional measures to strengthen the board's substantive role and authority. First, it will explicitly stipulate in its board regulations the basis for operating special committees that provide advice on major decisions involving potential conflicts of interest among shareholders or attracting significant public attention.
These committees will be non-standing advisory bodies composed exclusively of independent directors. When major issues arise, they will conduct preliminary reviews and assess them from an objective perspective.
The group will also establish a dedicated support organization, the Board Secretariat, directly under each company's board. The secretariat will support board operations and provide directors with advance information on key agenda items, helping them exercise their decision-making authority independently and effectively.
Separately from the schedule for appointing independent directors as board chairs, Hanwha Corp. and other major listed affiliates, including Hanwha Solutions and Hanwha Aerospace, plan to complete measures by November to formalize the basis for establishing special committees and set up Board Secretariats, following board resolutions and revisions to internal regulations.
A Hanwha Group official said, "We will strengthen our competitiveness in global markets through more advanced corporate governance and continue to build investor confidence."
in INDUSTRY
