Kumho Petrochemical Launches Three Committees Within the Board as the First Step in ESG Management

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical announced on the 22nd that it has officially launched the newly established ESG (Environmental, Social, and Governance) Committee, Internal Transactions Committee, and Compensation Committee within the Board of Directors this year and will begin full-scale activities.

Kumho Petrochemical held a board meeting to establish committees under the Board of Directors following the results of the regular shareholders' meeting in March. It also enacted detailed regulations regarding the composition, authority, and operation of each committee. All committee chairpersons are outside directors to enhance the independence of committee operations and decision-making.

The ESG Committee is composed of three or more directors, with at least two-thirds of the total members being outside directors, and the chairperson is selected from among the outside directors. This committee focuses on creating a management environment that values environmental and social responsibilities based on appropriate and transparent governance. The ESG Committee consists of four members: outside directors Park Soon-ae, Choi Do-sung, Lee Jung-mi, and inside director Baek Jong-hoon, with Park Soon-ae serving as chairperson.

The Internal Transactions Committee is responsible for monitoring conflicts of interest in transactions with affiliates and related parties and enhancing transaction transparency. This committee consists of three outside directors: Lee Jung-mi, Jung Yong-sun, and Hwang Yi-seok, with Lee Jung-mi serving as chairperson.

The Compensation Committee ensures that executive compensation is linked to performance and secures objectivity and transparency in the process of determining director remuneration. This committee is composed of three outside directors: Lee Jae-kyung, Park Soon-ae, and Jung Yong-sun, with Lee Jae-kyung serving as chairperson.

Last month, Kumho Petrochemical announced the resignation of Chairman Park Chan-gu from the CEO and registered director positions, declaring a transition to a board-centered management system. As a measure to promote this, on June 15, at an extraordinary shareholders' meeting, inside directors Ko Young-hoon and Ko Young-do were appointed to enhance expertise in R&D and finance. Subsequently, at today's board meeting, the company formalized the full-scale activities of the three committees?ESG Committee, Internal Transactions Committee, and Compensation Committee?laying the foundation for establishing a sustainable management system.

Meanwhile, detailed regulations of each newly established committee within the Board of Directors are scheduled to be disclosed on the company website in July.