[Asia Exclusive] Advocating for the Rights of 783 Member Companies and Protecting Investors... Proposing Opinions on Various Legal Revisions

100% of Listed Companies on the Korea Stock Exchange Are Members

Jung Wooyong, Vice Chairman of Policy at the Korea Listed Companies Association. / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kum Bo-ryeong] The Korea Listed Companies Association was established as a non-profit corporation to contribute to the development of the capital market through the advocacy of rights and interests and investor protection for companies listed on the Korea Composite Stock Price Index (KOSPI). Later, in April 1997, it was converted into a securities-related organization (currently a financial investment-related organization) under the amended Securities Exchange Act (now the Act on Capital Market and Financial Investment Business).

Membership is limited to corporations that have listed common stocks or stock substitute securities on the KOSPI of the Korea Exchange. As of the 24th, it has 783 listed companies as members. 100% of the companies listed on the KOSPI are members. The Listed Companies Association plays the role of gathering opinions on behalf of listed companies whenever there are discussions on the enactment or revision of laws and policies related to companies. It also prepares related statistical analysis data to support these opinions.

The purpose of establishment includes matters related to "investor protection." Quarterly, it collaborates with the Korea Exchange to compile and announce statistics on corporate performance data. In addition, it collects and analyzes basic indicators related to companies to suggest directions for companies and investors to follow.

When discussions on the abolition of shadow voting arose in 2014, the association worked to allow a one-time (three-year) grace period. After the abolition of shadow voting, it submitted policy proposals based on potential issues that could arise. It continues to communicate and convey opinions to reduce the burden on companies following the introduction of the new External Audit Act.

Jung Woo-yong, Vice Chairman of Policy at the Listed Companies Association, explained, "This year is the third regular shareholders' meeting since the abolition of shadow voting. We plan to compile and analyze statistics based on the results of the shareholders' meetings. Soon, as the 21st National Assembly begins and standing committees are formed, we are already preparing proposals that need to be made at that time."

The Listed Companies Association includes so-called large corporations as well as medium-sized and small enterprises. Vice Chairman Jung said, "About 15% are large corporations, and the rest are medium-sized and small enterprises. Therefore, we are always neutral, neither favoring large corporations nor medium and small enterprises. I always say that it should be an objective system if possible." He added, "We regularly hold meetings and create communication opportunities with other economic organizations such as the Korea Federation of Medium-sized Enterprises and the Korea Federation of Small and Medium Business."

This content was produced with the assistance of AI translation services.