Conglomerates nominate ex-officials as outside directors, rekindling controversy

Leading conglomerates scheduled to hold shareholders' meetings in the coming weeks have nominated company owners' close friends or former government officials for their new outside directors, regulator's data showed Wednesday, fanning criticism that the board of directors will again be relegated to rubber stamping. Hyosung Corp., a local heavy machinery maker, submitted a proposal to appoint former economy minister Choi Joong-kyung as its outside director ahead of the stockholders meeting slated for March 21, sources at the Financial Supervisory Service (FSS) said. Choi, the last economic chief under the previous Lee Myung-bak administration, is also a close friend of Hyosung owner Cho Suck-rae, who was indicted on tax evasion and embezzlement charges.