SEOUL, August 19 (AJP) - LG Group has shifted the chairmanship of the boards at 11 major listed affiliates to independent directors, stepping up corporate governance changes as South Korea moves toward mandatory environmental, social and governance disclosures.
LG Corp., the group's holding company, said it recently published its 2025 ESG report outlining sustainability performance and future plans across compliance, climate change and workplace safety. The report covers LG Corp., subsidiaries including LG CNS and D&O, and major affiliates including LG Electronics, LG Chem and LG Uplus.
The most notable governance change is the group's transition to independent board chairs at 11 listed companies, including LG Corp., LG Electronics, LG Chem, LG Uplus and LG CNS.
At LG Corp., Chairman Koo Kwang-mo had previously served concurrently as chairman of the board. LG said separating board leadership from management is intended to strengthen board independence and oversight and improve transparency in corporate decision-making.
The group has also operated a board-centered compliance governance system since 2023, placing responsibility for oversight of key compliance risks with company boards while delegating implementation and monitoring duties to ESG committees, chief executives and compliance officers.
The changes come as Korean companies prepare for tighter sustainability disclosure requirements.
LG Corp. has applied standards being developed by the Korea Sustainability Standards Board, or KSSB, to its ESG reporting since 2024, ahead of mandatory ESG disclosures scheduled for 2028. Its latest report applies the framework across compliance, climate change and occupational health and safety.
On climate, LG said it is targeting a 34 percent reduction in greenhouse gas emissions from 2018 levels by 2030 and a 52 percent reduction by 2040, before reaching net zero by 2050. The group plans to periodically revise the roadmap to reflect technological advances and progress at its affiliates.
LG has also incorporated AI technology into its workplace safety initiatives, showcasing AI-based safety and environmental systems through its group-wide Safety Health Environment Conference, which has been held since 2023.
AJP Takeaways
- LG has moved 11 major listed affiliates to independent board chairmanship, separating board leadership from management as part of a broader governance overhaul.
- The group has incorporated KSSB sustainability standards into its ESG reporting since 2024, ahead of South Korea's planned mandatory ESG disclosures in 2028.
- LG is targeting a 34 percent cut in greenhouse gas emissions from 2018 levels by 2030, 52 percent by 2040 and net zero by 2050.
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