Hankook Tire Corporate Governance
To sustain transparent and accountable corporate principles, Hankook Tire has embraced a corporate governance system which recognizes and deals with a wide range of ethical issues to better manage our company and make decisions that benefit all stakeholders.
Transparent corporate governance is a prerequisite to make fair and responsible corporate decisions that properly reflect the interests of all stakeholders. In order to protect shareholders' entitlements and increase the transparency and proficiency of management, Hankook Tire has built an advanced corporate governance structure; one that places both company and shareholders' gains as its top priority and guarantees transparency in the decision-making process starting from the Board of Directors.
Hankook Tire is taking the lead in establishing an ethical management system and corporate culture, and is striving to internalize a principled system which enables the Board of Directors to examine issues pertaining to morality and ethicality stemming from the operation of the company and decision-making directives.
■ Best practice recommendations on governance by KCGS
| KCGS Governance recommendations | Implementation (Y/N) |
Remarks |
|---|---|---|
| Introduction of a corporate governance charter | N | Company target to develop a governance charter by 2023, but under review of achievement by 2022 |
| Adoption of Written and Electronic voting system | Y | - |
| Adoption of cumulative voting | N | - |
| BOD composition with a majority of independent directors | Y | 3 executive directors and 4 independent directors |
| Separation of BOD Chair and CEO | N | BOD Chair appointed by vote, but currently the CEO elected as the Chair by the BOD (as of 2021) |
| Purchasing liability insurance for directors at the expense of the company | Y | - |
| Introduction of a regulation that articulates the scope and role of the Board and its sub-committees | Y | Audit Committee, NED Committee, Internal Transaction Committee, Sustainability Committee, ESG Committee |
| Disclosing BOD’s activities, attendance rates and voting results on important agendas | Y | Disclosed in company's website |
| Evaluating the activities of the BOD | N | Currently independent directors conduct self-evaluations, and the company is under review to expand the practice for the full BOD by 2022 |
| Establish a Committee for Recommendation of Independent Directors | Y | 3 executive directors and 4 independent directors |
| Establish an Audit Committee (consisting of independent directors only) |
Y | 4 independent directors |
| Certifying the accuracy and integrity of the financial reports made by the CEO and the CFO | Y | - |
| Disclosing audit reports and major disclosure notices in Korean and English | Y | Audit report disclosed in company's website, Fair disclosure available in English |
| Disclose corporate governance evaluation grade | Y | Disclosed in company's website |
| Establishment of corporate ethics | Y | Disclosed in company's website |
| Explanation of differences with KCGS' governance best practices | Y | Disclosed in company's website |
