CEO Score Surveys 278 Listed Companies
8 More Appointed Than Last Year in First Year of Revised Commercial Act
Hyundai Motor 11 Members... Fierce Competition Expected for Appointments
[Asia Economy Reporter Kim Heung-soon] With the enforcement of the revised Enforcement Decree of the Commercial Act last year, which limits the term of outside directors of listed companies to 6 years (9 years including affiliates), it has been revealed that more than 80 outside directors of large corporations need to be replaced at the shareholders' meetings in March this year. Accordingly, competition among companies to appoint outside directors is expected to intensify.
According to a survey conducted by the corporate evaluation site CEO Score on the tenure of 898 outside directors of 278 listed companies within 64 large business groups, a total of 346 outside directors' terms expire in March this year. Among them, 84 outside directors cannot be reappointed due to the term limit. This is an increase of 8 from the 76 outside directors last year, when the revised Enforcement Decree limiting the term of outside directors of listed companies was first implemented.
By group, Hyundai Motor Group must replace 11 outside directors in March this year. Among the 12 listed companies in Hyundai Motor Group, more than half of the 20 outside directors whose terms expire this year are subject to the term limit. LG Group also needs to replace 8 of the 15 outside directors whose terms expire, due to the 6-year term limit.
Samsung has 4 of the 15 outside directors whose terms end in March this year subject to the 6-year term limit. Hyosung and Youngpoong also need to replace 4 outside directors each, while SK, GS, CJ, Doosan, S-OIL, HDC, Korea & Company, and Taekwang each need to newly appoint 3 outside directors. Lotte, POSCO, Shinsegae, KT, Taeyoung, SeAH, Celltrion, and Kumho Petrochemical each have 2 outside directors to be replaced, and Hanjin, Kumho Asiana, Korea Investment & Finance, Kyobo Life Insurance, Harim, KCC, SM, Nexon, Halla, Samchully, Dongkuk Steel, Hite Jinro, and Eugene each have 1 outside director subject to replacement due to the term limit.
By company, Hyundai Glovis and S-OIL each need to replace 3 outside directors. There are 11 outside directors who have served for more than 10 years (including affiliates), including Oh Ho-su of LS Networks. Director Oh will have served a total of 18 years by the time his term expires in March next year, followed by Director Geum Byung-joo of LS Networks, who will have served 15 years until March next year.
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