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'Conscious of Shareholder Backlash?' KG Group 2nd Generation Kwak Jung-hyun Resigns as Executive Director of Key Subsidiaries

[비즈한국] It has been confirmed that Kwak Jung-hyun, KG Group President and eldest son of KG Group Chairman Kwak Jae-sun, has resigned from his positions as executive director at two subsidiaries. In March, President Kwak resigned as an executive director of KG Eco Solution060900 and KG Inicis035600. His original term was set to run until March 2026. President Kwak also stepped down as a director of KG Mobilians046440 upon the expiration of his term. This is interpreted as a move made in response to criticism regarding excessive concurrent positions.

Beyond KG Eco Solution and KG Inicis, President Kwak continues to serve as an executive director for companies including KG Chemical001390, KG Steel016380, and KG Zeroin. During the March 2024 KG Steel shareholders' meeting, the National Pension Service opposed his appointment as an executive director, citing his excessive number of concurrent roles.

KG Eco Solution, from which President Kwak resigned, is considered a core subsidiary of the KG Group. In addition to operating a bio-energy business, it serves as the holding company for the KG Group. Last year, on a consolidated basis, it recorded 7.2849 trillion won in revenue and 226.5 billion won in operating profit.

KG Inicis is an electronic payment gateway (PG) company. Last year, it recorded 1.3543 trillion won in revenue and 61 billion won in operating profit. While perhaps not at the level of KG Eco Solution, it is a subsidiary achieving significant performance.

It is expected that President Kwak will focus his management efforts on KG Chemical and KG Steel. Among them, attention is particularly focused on KG Chemical, as President Kwak currently serves as its CEO. KG Chemical’s growth has remained stagnant. Revenue decreased by 0.78% from 8.9331 trillion won in 2023 to 8.8631 trillion won in 2024, while operating profit fell by 27.97% from 442.6 billion won to 318.8 billion won during the same period. Whether he can improve KG Chemical's performance may serve as a benchmark for evaluating his management capabilities.

A KG Group official stated, "As of the end of March this year, President Kwak Jung-hyun serves as a registered executive at three companies: KG Chemical, KG Steel, and KG Zeroin," adding, "He is demonstrating a more focused management approach alongside efforts to enhance transparency."