Fast reading
- South Korean regulators have already implemented meaningful and impressive measures to address the so-called ‘Korea discount’.
- But regulatory reform does not automatically mean company management is suddenly “on side”. An ongoing structural issue in South Korea’s public markets remains concentrated family control. It continues to give directors both the ability and the incentive to act in ways that disadvantage minority shareholders. Even as rules tighten, many boards are still looking for ways to preserve control, limit accountability and resist changes that might force them to share more of the gains with outside investors.
- We recommend key additional regulations for consideration, including an advisory shareholder vote on Value Up statements (with inheritance tax implications for a ‘no’ vote), and enhanced required Value Up disclosure – not only for companies trading below book value – but also for holding companies, and for companies with non-voting stock in issue and with high cash holdings relative to their operating needs.
Keynote address to the Korea Corporate Governance Forum in May 2026
For more information: Asia ex-Japan Equity
Share:
BD017750
