Hanwha Group is significantly expanding the appointment of independent directors as board chairs to enhance the transparency and independence of its board, aiming to maximize shareholder protection and corporate value.
On October 14, Hanwha announced that Kwon Ik-hwan has been appointed as the new chair of the board of directors for Hanwha Corporation. Previously, Hanwha Solutions had appointed an independent director as board chair starting in 2024.
Kwon, a legal expert and graduate of the 22nd class of the Judicial Research and Training Institute, has held various positions, including Director of Planning and Coordination at the Ministry of Justice, Chief Prosecutor of the Daejeon District Prosecutors' Office, and Chief Prosecutor of the Southern Seoul District Prosecutors' Office.
Since joining the board of Hanwha Corporation in 2022, Kwon has served as the chair of the internal transaction committee, a member of the audit committee, and a member of the ESG committee. Hanwha Group expects Kwon to play a significant role in the board's decision-making process, leveraging his expertise in law and capital markets.
Hanwha Systems and Hanwha Ocean are also in the process of appointing independent directors as board chairs. Hanwha Systems plans to finalize its appointment by the end of this month, while Hanwha Ocean aims to complete the process by next month.
Hanwha Aerospace and Hanwha Engine intend to reorganize their board structures in response to changes in the operational environment due to the implementation of the revised Commercial Act, with a goal of appointing an independent board chair by the first half of 2027.
Additionally, Hanwha Group is establishing institutional measures to strengthen the roles and powers of its board. It plans to formalize the operation of a 'special committee' in its board regulations to advise on major decisions that may present conflicts of interest among shareholders or attract significant public attention.
The special committee will be a non-permanent advisory body composed solely of independent directors, tasked with reviewing relevant issues and verifying objectivity when significant matters arise. This initiative aims to protect shareholder interests and enhance the fairness of the decision-making process.
Each subsidiary will also establish a 'board secretariat' to support the board's operations and provide advance information on key issues, enabling directors to make independent decisions.
Major listed companies, including Hanwha Corporation, Hanwha Solutions, and Hanwha Aerospace, plan to complete the formalization of the special committee's operation and the establishment of the secretariat by November, alongside board resolutions and regulatory amendments.
A Hanwha Group official stated, "This move responds to the societal demand for an expanded role of the board and prioritizes enhancing shareholder value. We aim to secure competitiveness in the global market through advanced governance and continuously strengthen investor trust."
* This article has been translated by AI.
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