South Korean textile giant Hyosung officially launched a holding group and four affiliates on Friday to improve transparency in management and corporate governance, officials said Sunday.

In the first major change in decades, the textile company will have four operations under a control tower, Hyosung Corp. The CEO post of the holding company will be shared by Hyosung Chairman Cho Hyun-joon and President Kim Kyu-young. President Cho Hyun-sang, the chairman’s younger brother, was named boardroom member.

“Hyosung will leverage the expertise possessed by the holding company Hyosung Corp. and the four new operating affiliates to maintain and advance transparent management and raise our competitiveness to become a perennial global leader, thus enhancing our corporate and customer value,” said Chairman Cho.

A total of 11 internal and 20 external directors were appointed for Hyosung Corp. and four companies – Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries and Hyosung Chemical. Hyosung TNC will handle Hyosung’s signature business spandex and Hyosung Advanced Materials, tire cords. Hyosung Heavy will tap into power systems and industrial machinery while Hyosung Chemical will cover the emerging market of polypropylene and nylon film.

Hyosung’s governance reform will be completed by the end of the year after increasing capitals in each company. The four new companies are listed in the market on July 13. 

By Cho Chung-un (christory@heraldcorp.com)