Entering the 10% Range for the First Time in 2021, Rising to 20% Range Within a Year
Impact of Capital Market Act Amendment... Samsung Electronics and Others Also Have Two Members
[Asia Economy Reporter Moon Chaeseok] Last year, for the first time, the proportion of female outside directors among the top 100 domestic companies surpassed 20%. Korea Gas Corporation had the highest number with 8, and Samsung Electronics, Samsung Electro-Mechanics, LG Energy Solution, and LG Chem each appointed 2 female outside directors.
Global headhunting specialist Unico Search released an analysis report on the status of outside directors in the top 100 companies on the 12th. The survey covered the top 100 listed companies by sales based on separate financial statements in 2021.
According to the survey, as of the third quarter of last year, there were 94 female outside directors among the top 100 companies, accounting for 21% of the total 447 directors. The proportion of female outside directors in the top 100 companies had been expanding from 7.9% (35 people) in 2020 to 15% (67 people) in 2021. The number of companies appointing female outside directors also showed a sharp increase from 30 in 2020, 60 in 2021, to 82 last year.
Unico Search analyzed that the revision of the Capital Market Act had an impact. Since August last year, a regulation has been in effect that when forming a board of directors for companies with assets exceeding 2 trillion won, the board must not be composed of only one gender.
By company, Korea Gas Corporation appointed the most outside directors with 4, half of whom were women out of a total of 8. The company appointed CEO Choi Yeon-hye as the chief executive officer on December 9 last year.
Other companies that appointed 2 female outside directors include Samsung Electronics, Korea Electric Power Corporation, Kia, S-Oil, LG Chem, Lotte Shopping, LG Energy Solution, Samsung Electro-Mechanics, and Kumho Petrochemical.
By background, academia accounted for the largest share at 44.7%. The legal sector followed with 24.5%, and the business sector with 23.4%. It is analyzed that the proportion of outside directors with a legal background is still higher because there are fewer female executives in large companies.
Among business sector appointees are Shim Soo-ok, former vice president of Samsung Electronics and outside director of Lotte Shopping.
As of the third quarter of last year, there were 728 female registered executives (inside and outside directors) in the top 100 companies. Among them, 99 (13.6%) participated on the boards. The proportion increased from 5.2% in 2020 and 9.2% in 2021, surpassing 10% for the first time last year.
Female inside directors who are CEOs include Lee Boo-jin, president of Hotel Shilla; Choi Soo-yeon, CEO of Naver; and Chae Sun-joo, head of external and ESG policy at Naver.
Kim Hye-yang, CEO of Unico Search, said, "Many companies barely comply with the law by appointing just one female outside director," but she predicted, "Over time, more companies will increase the number to two or more."
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