According to the Korea Times, Samsung Electronics said on Friday that in order to improve the transparency and independence of corporate governance, the company convened a board of directors and elected outside director Baek Jae-wan, the former Minister of Economy and Finance of South Korea, as its chairman.

As the first external director appointed, Samsung said it expects Park Jae-wan to examine the company's business activities from multiple perspectives. Park Jae Man has been an outside director of Samsung since March 2016. He has a deep understanding of Samsung and its board. He will also chair the board's strategic decision-making process based on the manager's experience.

Park Jae-wan will replace Lee Sang-hoon, who resigned on February 14 for violating labor laws. In December last year, Seoul Central District Court sentenced Lee Sang-hoon to 18 months in prison for sabotaging union activities while serving as Samsung's chief financial officer.

In response to investors' calls for Samsung to improve compliance measures, Samsung has been stepping up anti-corruption efforts to avoid harming the company's value. In January, the company formed a compliance committee led by former Supreme Court Justice Kim Ji-hyung to fight corruption and eradicate all illegal activities.

However, given that Park Jae-wan has been a professor at Sungkyunkwan University since 1996, and Sungkyunkwan University and Samsung Group have formed a strategic alliance, the new board chairman can make a substantial decision independently. It remains to be seen.

At the same time, Samsung also proposed to add two directors: Han Jong-hee, president of the visual display business, and Choi Yoon-ho, chief financial officer. Samsung said that Han Zhengxi demonstrated his leadership and led the company's TV business to the number one in the world for 14 consecutive years. In addition, Cui Yuanhao is recognized for his financial expertise.

The two nominees will be appointed as members of the new board of directors after they are approved at the company's annual shareholder meeting on March 18.