Koo Yeon-kyung, the head of LG Welfare Foundation, is facing growing controversy over her potential reappointment, as her current term is set to expire on the 31st of next month. Concerns about her suitability for the role have been raised, especially as she is awaiting trial on charges of stock trading using undisclosed information.
Koo has been advising LG Welfare Foundation’s social contribution initiatives since 2021 and was appointed as the foundation’s fourth CEO on April 1, 2022.
The head of LG Welfare Foundation is selected through board endorsement, and the foundation typically finalizes executive appointments a month in advance through a board meeting. Therefore, a decision on Koo’s reappointment is expected soon.
However, opposition to her reappointment is mounting. She has been indicted without detention on allegations of acquiring unfair profits by purchasing stocks using undisclosed investment information received from her husband, Yoon Kwan, CEO of BRV. Her first trial is scheduled for the 18th of next month.
Civic groups have criticized Koo, stating, "This case undermines fairness and transparency, making her an unsuitable figure to lead a public welfare organization."
Some argue that her reappointment may not even be legally viable.
Controversy has emerged over LG Welfare Foundation board meetings held at Koo’s residence in Hannam-dong in July, November, and December last year, during which meals were provided to board members.
According to Article 18-2 of the Social Welfare Services Act, offering money or entertainment in relation to executive appointments is strictly prohibited, raising concerns that this provision may have been violated.
Koo’s reappointment ultimately depends on the decision of LG Welfare Foundation’s board members.
The board consists of seven members, and a majority approval from at least four of the six voting members (excluding Koo) is required for her reappointment. While most board members were present during her initial appointment, a recent rejection of her stock donation proposal by the board suggests that support for her reappointment is uncertain.
Industry insiders note, “LG Welfare Foundation operates on public trust, particularly through initiatives like the ‘LG Humanitarian Award.’ The controversy surrounding Koo could burden the organization’s operations. It would be best for her to step down voluntarily.”
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Controversy Over Koo Yeon-kyung’s Reappointment as LG Welfare Foundation Head, Impact of Insider Trading Allegations?
Koo Yeon-kyung, the head of LG Welfare Foundation, is facing growing controversy over her potential reappointment, as her current term is set to expire on the
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