STX to overhaul board and strengthen management transparency

[Financial News] Global general trading company STX is pursuing a management overhaul, including forming a board with a majority of independent directors and introducing an audit committee. The company aims to strengthen board independence and internal controls, improve management transparency and restore market confidence.
STX announced on the 22nd that it will hold an extraordinary general meeting of shareholders on November 19 to appoint new directors and establish an audit committee.
The agenda for the extraordinary shareholders’ meeting includes appointing five new directors: two inside directors and three independent directors. The inside director candidates are Jeon Jae-gon, formerly in charge of the management division at Celltrion, and Park Ji-wan, former head of the ethical management support division at Korea Aerospace Industries (KAI).
The independent director candidates are Kang Hong-gi, former deputy head of the Management Support Division at the Korea Exchange; Justice Kwon Young-jun, formerly a judge at Changwon District Court; and Lee Sang-jun, a certified public accountant and managing partner at Hanul Accounting Corporation. Recommended by the Korea Listed Companies Association, they are expected to oversee and check management, drawing on their expertise in capital markets, law and accounting, respectively.
Through this board overhaul, STX plans to increase the proportion of independent directors to a majority and establish a decision-making system independent of its largest shareholder. In particular, although it is not required to establish an audit committee, the company has decided to introduce one composed of three independent directors to strengthen oversight of accounting and internal controls. It also plans to establish an internal control committee by the end of the year and put in place a system of accountable management.
The move is part of the management overhaul STX has pursued since acquiring Bumhan Industries. In line with its management improvement plan submitted to the Korea Exchange, the company is focusing on reforming its governance structure and improving management transparency.
An STX official said, “This board overhaul is an important turning point in moving away from the past management system and establishing a transparent and accountable management structure. We will restore market confidence with a board that has independence and expertise, and take a leap forward as a new STX.”

[email protected] Lim Su-bin Reporter