KGM Mobility, the first in the industry to expand union participation in the board of directors, introduces the 'Participating Director System'

*This content was translated by AI.

KGM Mobility (hereinafter KGM) announced on the 28th that it will suddenly introduce the 'Participating Director System,' under which a labor union participates as a member of the board of directors, a first in the automotive industry. This system was first proposed last December by Kwak Jae-seon (Chairman) during a year-end meeting with the KG Group family company labor union and the employee council, and was subsequently institutionalized after substantive consultations with the labor union on specific participation plans.

The Participating Director System is a participatory governance model designed to allow the labor union, as a representative of employees, to directly participate in the board of directors, the company's highest decision-making body, and express opinions on major management issues and the decision-making process.. In fact, at the third board meeting held on the 24th, Noh Dong-jo-hap (Chairman) attended in person as a participating director to convey the voices from the field.

Noh Cheol (Chairman) expressed expectations that through participation in the board of directors, the system would help resolve information asymmetry between labor and management by securing management information, and significantly contribute to enhancing mutual trust and expanding communication by reflecting field opinions in the management decision-making process. KGM plans to build a joint management partnership that goes beyond the existing simple labor-management relationship through the introduction of this system and to realize more balanced decision-making. Director Hwang Gi-yeong (CEO) emphasized that the Participating Director System is an advanced governance model that moves away from the existing management-centered structure, allowing all employees to confidently participate in management to achieve common goals, and stated that through this, the company plans to positively impact the company's future and enhance its global competitiveness.

KGM introduced the introduction of the Participating Director System as an effort to simultaneously pursue technological innovation and organizational culture innovation to leap forward as a future mobility company. In the industry, it is expected that if the ideal goal of this Participating Director System is achieved, it will be evaluated as an opportunity to realize ESG management and corporate social responsibility.

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*This content was translated by AI.