LG Group, South Korea's fourth-largest conglomerate, on Friday unveiled measures to improve its corporate governance and transparency in management.

LG said its listed affiliates will establish an environmental, social and governance (ESG) committee and an in-house trading committee within their boards.

The newly established ESG committee will comprise of outside directors, with the company's CEO also participating as a member to better execute its plans.

LG said the committee, which will cover issues from safety to shareholder value, will also have a consulting group consisting of experts in the ESG field.

The in-house trading committee will review business deals related with the company's affiliates and whether such deals comply with fair trade.

The committee will report regularly to board members before they approve the deals.

LG said its affiliates will also have an expanded audit committee with more members while recruiting more female outside directors to enhance diversity. (Yonhap)