Business circles accelerate hiring of female outside directors... Four major groups compete to recruit 'future business experts'

Samsung Electronics Reappoints Professor Kim Seon-wook
Hyundai Motor's First Female Outside Director, Associate Professor Lee Ji-yoon in UAM Field
SK Hynix Appoints Professor Han Ae-ra to Enhance Board Operation Objectivity
LG Appoints Legal Expert Professor Kang Su-jin

[Asia Economy Reporter Kim Heung-soon] With the revised Capital Markets Act mandating that large corporations include at least one female director on their boards starting August next year, the business community, led by the four major groups?Samsung, Hyundai Motor, SK, and LG?is accelerating efforts to recruit female outside directors. These four groups aim to enhance corporate value in the mid to long term by actively bringing in experts focused on future core businesses.

According to the business community on the 26th, Samsung Electronics plans to reappoint Professor Emeritus Kim Sun-wook of Ewha Womans University Law School, whose term expires at next month’s general shareholders’ meeting. Samsung Electronics swiftly opened the era of female outside directors in 2013 by recruiting Kim Eun-mi, the current president of Ewha Womans University. They appointed a figure with not only relevance to their main business areas but also significant social symbolism. Professor Emeritus Kim was the first female head of the Ministry of Government Legislation during the Roh Moo-hyun administration and also served as president of Ewha Womans University.

Hyundai Motor Group, appointing a female outside director for the first time this year, is focusing on recruiting experts in future new business fields. Hyundai Motor has selected Associate Professor Lee Ji-yoon of KAIST’s Department of Aerospace Engineering as its first female outside director candidate. Professor Lee was the first female director of the Korean Society for Aeronautical and Space Sciences and, in 2019, became the first Korean professor elected as a director of the American Institute of Navigation. Hyundai Motor is expected to seek her opinions on directions and technological trends in the urban air mobility (UAM) sector, which it has positioned as a future core business.

Hyundai Mobis has confirmed Professor Kang Jin-ah of Seoul National University’s Graduate School of Technology Management and Economics Policy, an expert with nearly 30 years of experience in technology management and business innovation, as an outside director candidate. Kia has selected Professor Cho Hwa-soon of Yonsei University’s Department of Political Science and Diplomacy, an expert spanning political science and science and technology fields, as its outside director candidate.

SK Group is also actively recruiting experts as it expands board-centered management. SK Telecom plans to reappoint Professor Yoon Young-min of Korea University’s Department of Media Studies, an expert in crisis and communication management, as an outside director. Earlier, SK Hynix recruited Professor Han Ae-ra of Sungkyunkwan University Law School, a former judge, as an outside director in March last year to enhance objectivity in board operations.

LG Group is also accelerating efforts to recruit female outside directors. LG Electronics plans to propose the appointment of Professor Kang Soo-jin of Korea University Law School as an outside director at the shareholders’ meeting next month. Professor Kang is recognized as a legal expert well-versed in fair trade and compliance (law-abiding management). An LG Electronics official explained, "Given the company’s nature of conducting business both domestically and internationally, we intend to seek assistance from experts in related fields to prevent issues such as disputes." LG Hausys, a listed affiliate of LG Group, has nominated Professor Seo Soo-kyung of Sookmyung Women’s University’s Department of Environmental Design, and advertising agency G2R has nominated Professor Choi Se-jung of Korea University’s Department of Media Studies as outside director candidates.

A business community official said, "Apart from the legal amendment, there is great interest in the participation of meticulous and rational female experts on boards," adding, "Major companies are competing to find qualified experts."