SUSTAINABILITY REPORT 2021

GOVERNANCE

LFC Governance Performance

LFC has established advanced corporate governance based on a transparent and professional decision-making system centered on the BOD in order to carry out responsible business management based on ethical management and compliance awareness in its pursuit of sustainable growth.

Furthermore, we are building an integrated risk management system that covers both financial and non-financial aspects to respond systematically to possible risks and enhance our corporate resilience.

Board of Directors

The Board of Directors (BOD), LFC’s top decision-making body, has voting rights on corporate management and overall business operations. We operate the BOD transparently in order to carry out our management activities based on rigorous checks and balances. As of March 2022, our BOD consists of three inside directors and four outside directors, all of whom are experts in their respective fields. Based on the principle of independence, the outside directors provide expert opinions on the company’s major decisions from the perspective of sustainability, and also assess and review the company’s performance.

BOD Profile

Classification	Name	Gender	Key profile
Inside Directors	Yong-Seok Kim	Male	2021- CEO, LOTTE Fine Chemical 2020-2021 CEO, LOTTE INEOS Chemical 2019 Head of the Polymer Business Group, LOTTE Chemical 2018 Head of the Olefin Division, LOTTE Chemical 2014-2018 CEO, Chinese subsidiary, LOTTE Chemical
	Woo-Chan Kim	Male	2021- Head of the ESG Management Group, LOTTE Fine Chemical 2020-2021 Head of the Management Support Group, LFC 2019-2020 Head of the HR Department, Basic Materials, LOTTE Chemical 2017-2019 Head of the HR Department, LOTTE Chemical 2013-2017 Head of the Administration Department, Daesan, LOTTE Chemical
	Jun-Hyuk Shin	Male	2021- Head of the New Business Development Division, LOTTE Fine Chemical 2018-2021 Head of the Strategic Planning Division, LFC 2017-2018 Head of the Purchasing Division, LFC 2016-2017 Manager of the Material Purchasing Division, LFC

Classification	Name	Gender	Key profile
Outside Directors	Chang-Soo Lee	Male	2018- CEO of the Happy Space Tax Accounting Office 2019-2020 Adjunct Professor, Graduate School of Industrial and Entrepreneurial Management, Chung-Ang University 2015-2016 Adjunct Professor, Graduate School of Industrial and Entrepreneurial Management, Chung-Ang University 2012-2015 CEO, KPMG Korea 2004-2012 Deputy CEO, KPMG Korea
	Kyung- Hyun Ahn	Male	2009- Professor, Department of Chemical and Biological Engineering, School of Engineering, Seoul National University 2012- Head of the Nano-structure Polymer Processing Center
	Mi-young Kim	Female	2013- Professor, Department of Materials Science and Engineering, Seoul National University 2009-2013 Associate Professor, Department of Materials Science and Engineering, Seoul National University
	Nak-song Seong	Male	2020- CEO, Jiheon Law Firm 2019-2020 CEO, Pyeong An Law Firm 2018-2019 President, Judicial Research and Training Institute 2016-2018 Chief Judge, Seoul High Court

Sub-committees of the BOD

To enhance the expertise and efficiency of its management activities, LFC has formed various sub-committees of the BOD, including the Management Committee, Audit Committee, Transparent Management Committee, Compensation Committee, ESG Committee, and Independent Director Recommendation Committee.

Chair
Member

Classification	Inside Directors			Outside Directors				Roles and responsibilities
Committee	Yong-Seok Kim	Woo-Chan Kim	Jun-Hyuk Shin	Chang-Soo Lee	Kyung-Hyun Ahn	Nak-song Seong	Mi-young Kim	Roles and responsibilities
Management Committee								Improve efficiency of management and operation Resolve matters delegated by the BOD
Audit Committee								Ensure the transparency and management efficiency of the company
Transparent Management Committee								Secure transparency in managing the company by establishing the fair trade compliance system
Compensation Committee								Secure objectivity and transparency in calculating the remuneration of directors Determine the limit on the renumeration of registered directors to be submitted to the AGM Other matters as delegated by the BOD
ESG Committee								Set company-wide ESG management strategies and plans and make decisions on implementation matters Conduct monitoring of the performance of major tasks according to the ESG management strategies Make decisions to maximize ESG-based business opportunities and minimize risks
Independent Director Recommendation Committee								Recommend candidates for outside director at AGM