Hanwha Group Expands Appointment of Independent Directors as Board Chairs at Major Affiliates

Hanwha Co., Ltd. Appoints Independent Director Kwon Ikhwan as Board Chair; Hanwha Ocean and Hanwha Systems to Follow
Special Committees of Independent Directors and Board Secretariats to Be Established to Enhance Management Transparency

Hanwha Group is moving to overhaul its corporate governance, including appointing independent directors (outside directors) as board chairs at major listed affiliates. The move is intended to enhance the transparency and independence of their boards.

Kwon Ikhwan, the new chairman of the board of Hanwha Corporation

Hanwha Group said on October 14 that the board of Hanwha Corporation had appointed independent director Kwon Ikhwan as its new chair. The move expands a practice adopted by Hanwha Solutions in 2024, when it began appointing outside directors as board chairs, to other major listed companies in the group.

Kwon is a legal expert who graduated from the 22nd class of the Judicial Research and Training Institute and has served as director general of the Planning and Coordination Office at the Ministry of Justice, chief prosecutor of the Daejeon District Prosecutors' Office, and chief prosecutor of the Seoul Southern District Prosecutors' Office. He joined the board of Hanwha Corporation in 2022 and has served as chair of its Internal Transactions Committee and as a member of its Audit Committee and ESG Committee.

Hanwha Systems and Hanwha Ocean have also decided to appoint independent directors as board chairs and are currently working through the relevant procedures. They plan to complete the appointments following board resolutions by the end of October and November, respectively.

Hanwha Aerospace and Hanwha Engine aim to appoint independent directors as board chairs in the first half of 2027, after making some adjustments to their board composition to respond to external changes affecting board operations, including the implementation of amendments to the Commercial Act.

Alongside appointing independent directors as board chairs, Hanwha Group will introduce institutional measures to strengthen the boards' substantive roles and authority.

The group plans to codify in its board regulations the basis for operating "special committees," which will provide advice on major decisions involving potential conflicts of interest among shareholders or attracting significant public attention.

Special committees will be non-standing advisory bodies composed solely of independent directors. They will review and advise in advance on major management matters involving potential conflicts of interest among shareholders or attracting significant public attention.

Each affiliate will establish a dedicated support organization reporting directly to its board, called a "Board Secretariat." The secretariats will support board operations and provide advance information on major agenda items.

Hanwha Group's major listed companies, including Hanwha Corporation, Hanwha Solutions, and Hanwha Aerospace, plan to complete the establishment of a formal basis for special committees and the creation of Board Secretariats by November, following board resolutions and revisions to relevant regulations.

A Hanwha Group official said, "This measure responds to public calls to expand the role of boards and, above all, reflects our priority of enhancing shareholder value. We will strengthen our competitiveness in global markets through more advanced corporate governance and continue to build investor confidence."

This content was produced with the assistance of AI translation services.