Listed Hanwha companies to appoint independent directors as board chairs
Hanwha Group headquarters in Jung District, Seoul / Courtesy of Hanwha Group
Kwon Ik-hwan, new chairman of the board at Hanwha Corp. / Courtesy of Kwon
Hanwha Group said Wednesday it has appointed an independent director as chair of the board at Hanwha Corp., the group's holding company, adding that other listed Hanwha affiliates will also appoint independent directors as board chairs.
During a board meeting, the holding company appointed Kwon Ik-hwan as the new chairman of the board, replacing Kim Woo-seok, who is the company’s construction division CEO.
Kwon is a former prosecutor who served as head of the Ministry of Justice's Planning and Coordination Office and chief prosecutor of the Daejeon and Seoul Southern District Prosecutors' Offices.
Since joining Hanwha Corp.'s board in 2022, Kwon has chaired the internal transactions committee and been a member of the audit committee and environmental, social and corporate governance committee. Hanwha Corp. said Kwon is expected to lead the board's decision-making transparently based on expertise in law and capital markets.
The group said defense electronics unit Hanwha Systems and shipbuilder Hanwha Ocean will also appoint independent directors as chairs of their respective boards. Both companies are currently proceeding with the necessary procedures and plan to finalize the appointments in October and November, respectively.
Hanwha Aerospace and Hanwha Engine also plan to appoint independent directors as chairs of their respective boards in the first half of next year. Both companies are currently restructuring their boards in response to changes in the regulatory environment, including amendments to the Commercial Act.
Among Hanwha affiliates, Hanwha Solutions appointed an independent director as its board chair in 2024.
Hanwha Group said appointing independent directors as board chairs should improve its corporate governance by promoting transparency in major decision-making processes, ultimately strengthening market confidence.
The group also said it will introduce measures to strengthen the roles and authority of affiliates’ boards by securing grounds for establishing special committees that provide advice on decisions involving potential conflicts of interest among shareholders. The committees will be composed entirely of independent directors and review major issues before decisions are made.
“The measures are designed to meet growing public demand for stronger corporate boards and greater emphasis on shareholder value,” a Hanwha Group official said. “We will strengthen our competitiveness in global markets by improving corporate governance and continue to build investor confidence.”