“Shareholder activism is a new concept in Korea following many years of calm in the relationship between corporates and their owners.”
Paul Marriott, Senior Managing Director
Country:
Republic of Korea
Average % of insider ownership:
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 5 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 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 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. Cash Return: Dividends
2. Removal of CEO or other Board member
3. Cash Return: Buyback
Campaigns By Year
Total
Campaigns
Notable Invested Activists
• SC Fundamental Value
• National Pension Service
• Elliott Management
Recent activism campaigns
| SK C&C Co. Ltd | VS. |
National Pension Service |
| Celltrion Inc | VS. |
Ghost Raven Research |
| Samho Development | 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