Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Scandal-ridden EcoPro founder steps down from management
EcoPro Group founder Lee Dong-chae
By Park Jae-hyuk
By Park Jae-hyuk
EcoPro Group founder and Chairman Lee Dong-chae has decided to resign as the CEO of the group's holding company, EcoPro, following allegations of insider trading and the death of a worker due to a factory fire.
“In accordance with our board of directors' decision, we will replace our CEO after the regular general meeting of shareholders on March 30,” EcoPro said in its regulatory filing, Tuesday.
Lee has hinted at his intention to step down, apologizing for controversies involving his company.
“Instead of being obsessed with my position, I will strive for the growth of EcoPro and its 2,300 employees,” he said in an online meeting with investors on Feb. 28.
Some minority shareholders criticized him for retaining his position as the group's chairman. There is also speculation that he made the latest decision in order to handle the prosecutors' ongoing investigation into the insider trading suspicions, as well as fears that he could be imprisoned if another fatal industrial accident occurs at one of the group's factories, now that the Serious Accidents Punishment Act has gone into effect.
EcoPro Group, however, has claimed that his resignation is intended to hand over the individual CEO's authority to the board of directors.
According to the group, the new EcoPro CEO will be Kim Byeong-hoon, one of the incumbent co-CEOs of the group's key subsidiary, EcoProBM.
The position of the EcoProBM CEO will go to former Iljin Materials CEO Joo Jae-Hwan, who worked previously for Samsung SDI. This is the first time for EcoProBM to appoint an outside candidate as its leader.
EcoProHN, another subsidiary engaged in environmental businesses, will also replace its CEO.
In addition to their CEOs, the three companies plan to change many of their inside and outside directors.
EcoPro executive Park Jae-ha was recommended as a new inside director of the group's holding firm, while Seoul National University Business School professor Ahn Tae-sik and former tax officer Ha Jong-hwa were nominated as new outside directors.
EcoProBM recommended Joo and four additional candidates as its new inside directors. It also nominated secondary battery cell, legal and accounting experts as its three new outside directors. EcoProHN plans to appoint two new inside directors and a new outside director.