“South Korea’s recent corporate scandals underscore the need to empower shareholders to monitor and detect corruption at the top levels of management. South Korean President Moon Jae-in recently appointed Kim Sang-jo, a corporate reform activist, as chairman of the Korea Fair Trade Commission in a move supportive of this directive.”
Cara O’Brien, Senior Managing Director
Country:
Republic of Korea
Average % of insider ownership:
Activism
Threat Level
To learn more about this country, please click on the tabs below
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.
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
2. Dividends
3. Push For Merger of Company With Third Party
Campaigns By Year
Total
Campaigns
Notable Invested Activists
• Elliott Management
• SC Fundamental Value
• National Pension Service
Recent activism campaigns
| Kiswire Ltd. | VS. |
Concerned Shareholders of Kiswire |
| GS Home Shopping | VS. |
SC Fundamental Value |
Total Active
Campaigns
Contact FTI Consulting
Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com
Senior Managing Director
+852-3768 4537
Cara.Obrien@fticonsulting.com