40 percent of outside directors in Korea's top 30 conglomerates are from government officials, compared to 74 percent in the U.S. companies.
Experts have raised concerns that the local firms are utilizing the outside directors as windbreak.
According to local research firm CEO Score, among the 609 outside directors of the top 187 listed firms here, 235 directors came from the government (38.6 percent).
In eight companies, over half of the nonexecutive directors were bureaucrats.
Young Poong Corporation, a non-ferrous metal manufacturer, topped the list with 69.2 percent, followed by Doosan 69.2 percent, CJ 62.1 percent, OCI 61.5 percent, Shinsegae 52.6 percent, Lotte 51.7 percent and Hyosung 50 percent.
On the contrary, among the nine outside directors of Mirae Asset Financial Group, there is no one from the government. Posco had only two from bureaucrats out of 17. LG and KT also had less with 14.3 percent and 17.2 percent each.
By the former occupation of the directors, court and prosecution topped the list with 29.4 percent, followed by the Blue House 24.7 percent, tax 17.4 percent, fair trade commission and financial ministry each with 7.2 percent and Financial Supervisory Service with 1.7 percent.
As for the U.S. companies, the directors from the private sector accounted for 74 percent. Ex-government officials stood at only 9.9 percent, followed by academic 7 percent, tax and audit 3.8 percent, media 1.8 percent and politics 1 percent.
Lotte E&C, Lotte's construction arm, was embroiled in the suspicion of bribery following controversies on using poor materials and safety accidents.
