Back To World Map

2016 (End Year)

“Families tend to maintain large ownership thresholds at South Korean companies which has largely kept activism behind closed doors. However, Samsung's encounter with Elliott was a high profile reminder that South Korean companies are not immune to shareholder intervention.”

Paul Marriott, Senior Managing Director

Country:
Republic of Korea

Country: Republic of Korea

Average % of insider ownership:

9.66

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 5% threshold must disclose their voting rights via a public report filed to the Financial Supervisory Commission of Korea and the Korea Stock Exchange, stating the purpose of the holding as to whether the holdings are intended to influence the corporate governance rights of the issuers.

Any change of more than 1% with respect to the number of voting shares must be reported within 5 business days.

Shareholders that hold 1.5% of voting shares for at least six months consecutively gain the power to call a general meeting. A slightly lower threshold (at least 1% or 0.5%, 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. Dividends
2. Elect Director
3. Push for Merger of Company with third Party

Campaigns By Year

Total
Campaigns

11

Notable Invested Activists

• SC Fundamental Value
• Ghost Raven Research
• Elliott Management

Recent activism campaigns

SK C&C Co. Ltd
VS.
 National Pension Service
Samsung Electronics Co. Ltd.
VS.
 Elliott Management
Celltrion Inc
VS.
 Ghost Raven Research

Total Active
Campaigns

12

Contact FTI Consulting

Geoff Serednesky

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

Cara K. O'Brien

Senior Managing Director
+852-3768 4537
Cara.Obrien@fticonsulting.com