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Governance Structure

KT¡¯s emphasis on ethical management to improve corporate governance and management transparency
  • Corporate Governance Structure Model
  • External Assessment of Governance Structure
  • Difference From Model Standards

Governance Structure

Efforts to improve governance structure and to promote transparency in management

  • 01.Independence of the board of directors -> · Independence in the board of directors' composition and operation:73% of the board should be composed of external directors; separation of the CEO from the board chair. All the members of the audit, evalution and remuneration, and internal transaction commission are external directios. · Recommendation committee operated to screen external directors : (All external directors, one executive director) An external agency is utilized to investigate candidates for the post of external director. · External Directors vested with special authority:Assessment of CEO management contract and recommendation of dismissal, remunerations for CEO or executive directors, and determining payment methods.
  • 02.Responsible management by professional managers -> · Appointment and management contract:CEO candidates are recommended by a neutralcommittee. CEO is selected by the general shareholders meeting. Newly appointed CEO signs a management contract. The board of directors assesses CEO management performance each year. · Remuneration and dismissal:CEO remuneration is determined based on his management performance. The board of directors may recommend CEO dismissal to the general shareholders meeting when the CEO fails to perform his management contract terms.
  • 03.Shareholder value enhancement -> · Return to shareholders:Treasury share retirement, cash dividend payment. Shareholder protection. Cumulative/circular voting system introduced. · Protection of shareholder rights:CEO remuneration interlinked with stock price. Stock option assigned to the board members.
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