What is the Code of Best Practice for Corporate Governance?
The Code of Best Practice for Corporate Governance is the standard guideline necessary for Korean companies to establish a desirable corporate governance.
It was formulated by the Korea Institute of Corporate Govemance and Sustainability(KCGS) in September 1999 by referring to the codes of best practice for corporate governance of advanced countries and the opinions of experts in relevant fields.
Difference from the Code of Best Practice
Difference from the Code of Best Practice
| Recommended Code of Best Practice |
Adopted |
Remarks |
|
Cumulative Voting, Voting by Written Ballot
|
X
|
|
|
Convening the Board of Directors (more than once per quarter)
|
O
|
|
|
Requirements for forming the Board of Directors (outside directors forming the majority)
|
O
|
Independent directors ratio of 55%
|
|
Independency of outside directors (Independency from the company, management, and controlling stockholder)
|
O
|
|
|
Requirements for forming the Audit Committee (all outside directors)
|
O
|
One financial · accounting expert included
|
|
Compensation Committee
|
O
|
|
|
Maintaining liability insurance for Directors
|
O
|
Expenses borne by the Company
|
|
Formulation and disclosure of the Code of Ethical Business Conduct
|
O
|
On the homepage (Ethical Management)
|
|
Explanation of its difference from the Code of Best Practice
|
O
|
On the hompage
|
ESG rating by KCGS, MSCI
ESG rating by KCGS, MSCI
| Evaluating Body |
Category |
2023 |
2022 |
2021 |
2020 |
2019 |
2018 |
2017 |
2016 |
|
KCGS*
|
Integrated Rating
|
B+
|
A
|
A
|
A
|
B+
|
A
|
A
|
A
|
|
Environment(E)
|
A
|
B+
|
B
|
B+
|
B
|
B+
|
A
|
A
|
|
Society(S)
|
A+
|
A+
|
A+
|
A
|
A+
|
A+
|
A+
|
A+
|
|
Governance(G)
|
B
|
A
|
A
|
A
|
B+
|
A
|
B+
|
B
|
|
MSCI**
|
Integrated Rating
|
BBB
|
BBB
|
BBB
|
BB
|
BBB
|
BBB
|
BB
|
BB
|
* KCGS : Korea Institute of Corporate Govemance and Sustainability
** MSCI : Morgan Stanley Capital International
Carbon Disclosure Project(CDP) Korea Awards
Carbon Disclosure Project(CDP) Korea Awards
| Evaluation Agency |
Distinction |
2022* |
2021 |
|
CDP
|
Climate
|
Grade
|
A-
|
A-
|
|
Water Resources
|
B
|
A-
|
* 2022 CDP Korea awards winner : Carbon Management Sector Honors (Raw Materials)
