SEOUL, South Korea--(BUSINESS WIRE)--Hyosung (KRX:004800) Cho Hyun Joon President steps forward to improve Hyosung’s corporate governance to enhance its trust from shareholders and the market. These efforts include: launching a Transparency Committee that reports only to the Board of Directors; and appointing an outside director to the Chairman of Outside Director Recommendation Committee.
The key notes of the corporate governance improvement plan are stronger transparency, stronger independence in outside directors, and reinforcing internal monitoring. This change was initiated by President Cho Hyun Joon who stated in his inaugural statement in July that ‘We need to find measures to increase corporate transparency to bring upon greater shareholder value through broader communication with the market’.
Transparency Committee, Examining Internal Transactions and Reasonable Management
Hyosung Cho Hyun Joon President newly established a Transparency Committee that reports to the Board of Directors. Three outside directors (JEONG Sang-myeong, KWON Oh-gon, CHOI Joong-kyeong), and one inside director (KIM Kyoo-young) construe the 4 seats on the committee, represented by outside director JEONG Sang-myeong, a former Prosecutor General.
The Transparent Committee’s roles and responsibilities include: examining and resolving issues related large-scale internal transactions, to prevent any corporate tunneling or undue transactions; examining major management issues related to shareholder value, including divestment, incorporation, M&A, equity offerings and capital reduction; reviewing and monitoring performance of fair trade compliance program; and examining ethical management and social contribution activities.
The Transparent Committee will enforce internal transactions, and monitor if top management is facilitating reasonable management activities to protect the shareholders’ rights and interests. Findings and conclusions of the Transparent Committee will be disclosed at the end of each quarter, and through Hyosung’s business report.
Outside Director, appointed to Chairman of Outside Director Recommendation Committee
Outside Director KIM Myeong-ja, former minister of environment, is newly appointed to the Chairman of the Outside Director Recommendation Committee, succeeding Hyosung Cho Hyun Joon President.
This move will enhance the corporate value by appointing professional, accomplished, and experienced outside directors who are endorsed by an out-of-the-box view, and solidify the groundworks to perform Hyosung’s social responsibilities in earnest.
Reinforced Internal Accounting Policies
As a separate effort, Hyosung Cho Hyun Joon President reinforced Hyosung’s internal accounting policies to enhance financial transparency. Specialized manpower and information will be deployed to aid Auditors performing an independent and in-depth audit.
Furthermore, audits on the operation of ‘Internal financial management policy’, which is the result of the internal management improvement project concluded earlier this year, will be doubled from once a year to twice each year. This audit will provide a full-front internal financial monitoring through a substantial evaluation procedure.
All accounting managers and officers will undergo a ‘Financial Transparency and Policy Compliance Training.’ This training is expected to improve the financial understanding and practice of the managers and officers, and bring more trust in Hyosung to the market.
“The newly announced governance improvement plan displays our intents to enhance shareholder-friendly policies and secure transparency,” said KIM Kyoo-young (President), Representative Director. “We will continue our efforts to communicate with shareholders and the market with the goal to bring upon more trust toward Hyosung.”