Back To World Map

Data as of December 31, 2017

“South Korea’s recent corporate scandals will likely promote increased activity by shareholders to monitor and detect corruption at the top levels of management. The recently appointed Fair Trade Commission Chairman, Kim Sang-jo, a corporate reform activist, has been vocal about wanting to push for corporate governance reform and attract foreign investors.”

James Jarman, Senior Director

Country:
Republic of Korea

Country: Republic of Korea

Average % of insider ownership:

9.92

Activism
Threat Level


To learn more about this country, please click on the tabs below

  1. Country Summary
  2. Disclosure
  3. Shareholder Rights
  4. Company Defense

Improved corporate governance in the Republic of Korea has created a more fertile environment for shareholder activism. Coming from a very low level of activity, there has been a gradual increase in the number of shareholder activism cases since 2014, including Elliott’s headline-grabbing attempts to block a merger of two Samsung affiliates.

Shareholders and specially related persons reaching or exceeding a five percent threshold must disclose their voting rights via a public report filed to the Financial Supervisory Commission of Korea and the Korea Stock Exchange, stating whether the holdings are intended to influence the corporate governance rights of the issuers.

Any change of more than one percent with respect to the number of voting shares must be reported within five business days.

Shareholders that hold 1.5 percent of voting shares for at least six months consecutively gain the power to call a general meeting. A slightly lower threshold (at least one percent or 0.5 percent, held for at least six months consecutively) provides the power to add items to the meeting agenda and to request the dismissal of a director.

While staggered boards and the poison pill are not permissible under Korean law, companies can devise certain structural defenses by utilizing various types of shares, such as non-voting stock, or by adjusting the length of the term of the directorship.


Top Campaigns by Type

1. Gain Board Representation

Campaigns By Year

Total
Campaigns

13

Notable Invested Activists

• Elliott Management
• SC Fundamental Value
• National Pension Service

Recent activism campaigns

GS Home Shopping
VS.
 SC Fundamental Value
KB Financial Group Inc
VS.
 Labor Union of Kookmin Bank

Total Active
Campaigns

0

Contact FTI Consulting

Geoff Serednesky

Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com

James Jarman

Senior Director
+852 3768 4545
James.Jarman@fticonsulting.com