South Korea’s leading retailer Hyundai Department Store Group unveiled a shareholder-friendly policy move to set up special committees at its affiliates that will help increase management transparency.

Hyundai Department Store Group said on Thursday its major affiliates will launch new committees that will scrutinize internal trading deals among sister companies and executives’ compensation plans to ensure transparent and fair management. All members of the newly added committees will be composed of outside directors.

Following the launch of internal trading and compensation committees, Hyundai Department Store Group companies would apply stricter rules than those of the country’s fair trade laws to the inter-trading deals at the affiliates and more objective and thorough review systems for executives’ performance and payoffs.

“Stricter regulations on inside deals will enhance management transparency, and each committee will be run with better policy making process,” said a group official.

Hyundai Department Store Group plans to install such committees at Hyundai Department Store, Hyundai Green Food, Handsome, Hyundai Livart and Hyundai HCN after general shareholders’ meetings of each company next month. Only Hyundai Home Shopping Network Corp currently has such committees.

By Lee Yoo-jin and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]