"Strengthening Sustainable Management" LG Uplus Establishes 'ESG Committee and Internal Transaction Committee'

ESG Committee Composed of CEO Hwang Hyun-sik and Four Outside Directors
Internal Transactions Committee to Enhance Company Transparency... Established in July

[Asia Economy Reporter Eunmo Koo] LG Uplus announced on the 12th that it has established an ‘ESG Committee’ and an ‘Internal Transactions Committee’ within its board of directors as part of strengthening sustainable management.

LG Uplus held a board meeting on the afternoon of the 11th and resolved to establish the ESG Committee and the Internal Transactions Committee. With the establishment of these two committees, the number of committees within the board has increased to five, including the existing Audit Committee, Outside Director Candidate Recommendation Committee, and Finance Committee.

The ESG Committee serves as the highest deliberative body related to ESG management, responsible for establishing basic policies and strategies in ESG areas such as environment, safety, social responsibility, customer value, shareholder value, and governance, as well as reviewing mid- to long-term goals. The committee is composed of all outside directors (Directors Jeong Byeongdu, Yoon Seongsu, Kim Jongwoo, and Je Hyunju) and the inside director, CEO Hwang Hyunsik, totaling five members. The chairperson will be appointed through a resolution at the inaugural ESG Committee meeting. The ESG Committee is scheduled to meet once every six months as a principle but may convene as needed. It will comprehensively analyze the company’s ESG management plans and implementation performance and prepare countermeasures in case of significant ESG-related risks.

At this board meeting, the establishment of the Internal Transactions Committee was also resolved. Scheduled to be established on July 1, the Internal Transactions Committee will enhance transparency and appropriateness regarding internal transactions. The committee will consist of three outside directors (Directors Jeong Byeongdu, Kim Jongwoo, and Je Hyunju) and Executive Vice President and CFO Lee Hyukju, totaling four members. To ensure management transparency and fairness of transactions, the committee plans to review ▲transactions subject to self-dealing regulations under the Fair Trade Act ▲transactions with the largest shareholders and related parties under the Commercial Act ▲internal transactions requiring board approval under relevant laws.

Additionally, the board agreed to strengthen the authority and independence of the Audit Committee to enhance internal control and transparency and to make the Outside Director Candidate Recommendation Committee more substantive to increase fairness and transparency in the outside director appointment process.

An LG Uplus official stated, “The company established the ESG Committee and Internal Transactions Committee to fulfill its responsibilities and roles toward the environment and society and to establish transparent governance,” adding, “We will strive to create a sustainable foundation in the long term.”