On March 26, 2026, a new era of corporate governance dawned for one of South Korea’s largest conglomerates. LG Group announced the completion of its transition to an 'outside director chairman system,' a sweeping governance change spanning all 11 of its major listed affiliates. The move, finalized with the appointment of Park Jong-soo—a distinguished professor and expert in taxation and accounting—as chairman of LG Corporation’s board, represents a bold step toward greater transparency, independence, and diversity in the upper echelons of Korean business.
Park Jong-soo’s credentials are nothing short of impressive. Currently a professor at Korea University Law School, Park previously served as president of the Korean Tax Association in 2022, cementing his reputation as a leading authority in accounting and tax policy. Since joining LG Corporation as an outside director in 2023, Park has been active across several key board committees, including the Audit Committee, ESG Committee, Internal Transactions Committee, and Compensation Committee, according to reports from 딜사이트 and 뉴스토마토.
The significance of Park’s appointment extends beyond his personal qualifications. For the first time in eight years, the position of LG’s board chairman is no longer held by a member of the founding family. Koo Kwang-mo, who had served as both CEO and board chairman since June 2018, stepped down from the latter role as part of this governance overhaul. Koo’s decision signals a deliberate shift toward board independence, a principle increasingly valued by global investors and local watchdogs alike.
“The transition to an outside director chairman system is a proactive response to market demands for strengthened minority shareholder rights and enhanced transparency and independence in board operations,” said Kwon Bong-seok, LG’s Chief Operating Officer and Vice Chairman, during the regular shareholders meeting at LG Twin Towers in Yeouido, Seoul. The meeting, which Kwon chaired, underscored LG’s determination to set a new standard for responsible management and shareholder engagement.
Indeed, the March 26 shareholders meeting was a pivotal moment for the conglomerate. Six major agenda items were passed as originally proposed, including the approval of financial statements, amendments to the articles of incorporation, the appointment of new directors, and the setting of director remuneration limits. Among the most notable amendments were the deletion of cumulative voting exclusion clauses, the introduction of electronic shareholders meetings, the renaming of independent directors, and the strengthening of voting restrictions on the appointment and removal of audit committee members. These changes, as detailed by 스트레이트뉴스, are designed to increase transparency and ensure that the board’s actions remain above reproach.
Another key highlight from the meeting was LG’s approach to shareholder returns. Despite a decrease in net profit, the company confirmed that it would maintain its annual dividend per share at the same level as the previous year: 3,100 KRW for common shares and 3,150 KRW for preferred shares. The cash dividend for the current period was set at 2,100 KRW per common share and 2,150 KRW per preferred share. According to LG, this move fulfills the requirements for high-dividend company tax benefits and signals a commitment to stable shareholder returns even amid earnings headwinds.
Board composition also saw a refresh, with the appointment of Kim Hwan-soo, a former Seoul High Court judge, as an outside director and audit committee member. Park Jong-soo, whose term as outside director was expiring, was separately appointed as an outside director specifically serving on the audit committee. These appointments, 딜사이트 notes, are part of a broader push to infuse the board with legal and financial expertise, further buttressing its oversight capabilities.
LG’s governance transformation is not limited to its holding company. With this latest move, all 11 of LG’s major listed affiliates—including LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, LG HelloVision, LG CNS, and HS Ad—have completed the transition to the outside director chairman system. Notably, four of these affiliates, including LG Electronics, LG Innotek, and LG Chem, have appointed female outside directors as board chairpersons. This marks a meaningful advance for board diversity in a country where corporate leadership has long been dominated by men.
The rationale behind these sweeping changes is clear: to bolster the independence and transparency of board governance, protect the interests of minority shareholders, and align with global best practices. As Kwon Bong-seok explained at the shareholders meeting, “It is a proactive response to market demands for strengthening the rights of minority shareholders and enhancing the transparency and independence of board operations.”
Park Jong-soo’s leadership is expected to bring a new perspective to LG’s board. His deep expertise in tax and accounting, combined with his experience leading the Korean Tax Association and serving on multiple board committees, positions him well to oversee the company’s compliance, risk management, and ESG initiatives. Park’s appointment was unanimously approved by the board, reflecting broad confidence in his ability to steer the company through a rapidly evolving business environment.
The timing of LG’s governance overhaul coincided with what the Korean business press dubbed “Super Shareholders Meeting Day.” On the same day, Hyundai Motor held its own regular shareholders meeting, announcing bold plans to expand into comprehensive mobility services and introduce cutting-edge technologies such as autonomous driving and robotics. The parallel between the two giants is striking: both are embracing change, albeit in different arenas—Hyundai in business model innovation, LG in governance reform.
For LG, the transition also marks a strategic realignment for Koo Kwang-mo. With board chair duties now in the hands of an independent director, Koo is expected to focus more intently on group-wide business strategy and future investments. In remarks to executive officers on March 25, Koo underscored the importance of speed and decisive execution in the company’s ongoing artificial intelligence transformation, urging that “the most important thing is speed, and fast execution is needed over perfect plans.”
Industry observers see LG’s governance reforms as a harbinger of broader changes in South Korean corporate culture. By relinquishing control of the board to independent directors, LG is sending a powerful message about the value of checks and balances at the highest levels of management. The move is also likely to resonate with foreign investors, who have long called for greater board independence and transparency in Korean conglomerates.
As LG embarks on this new chapter, all eyes will be on how the outside director chairman system shapes the company’s strategic direction, risk management, and stakeholder engagement. With Park Jong-soo at the helm, and a more diverse, independent board in place, the conglomerate is poised to navigate the challenges ahead with renewed vigor and accountability.
In the end, LG’s governance transformation is not just about boardroom mechanics—it’s about building a foundation for sustainable growth, long-term value, and trust in a rapidly changing world.