Meritz Asset Management "Improvement in Corporate Gender Equality Indicators, Threefold Increase in Female Registered Executives"

Meritz Asset Management announced on the 8th that the gender equality indicators of domestic companies are improving.

According to Meritz Asset Management, among companies with total assets exceeding 2 trillion KRW, the proportion of companies with at least one female executive director was 81% as of the 2021 fiscal year. This represents nearly a threefold increase compared to 30% in 2019.

This survey was conducted in collaboration with Sustainvest, an ESG (Environmental, Social, and Governance) specialized company, targeting 354 domestic companies in the fund investment universe (136 companies with assets over 2 trillion KRW and 218 companies with assets under 2 trillion KRW) in celebration of International Women's Day. Along with the increase in female executive directors, gender equality indicators within companies, such as the difference in years of service and salary between male and female employees, have also shown improvement.

Meritz Asset Management attributed these changes to government policies mandating the appointment of female directors and the implementation of diversity-inclusive policies, as well as improved ESG awareness within companies.

However, in mid-sized companies with total assets under 2 trillion KRW, there has been little change in the proportion of women participating on boards, years of service, and salary differences, highlighting the need to spread awareness and improve perceptions in these companies.

Kim Hong-seok, lead portfolio manager of the Meritz The Women Fund, stated, “Overseas cases show that companies with a higher proportion of female management participation demonstrate better performance in terms of return on equity (ROE) and stock price returns. In Korea as well, if investments are made by selecting companies with a high proportion of female management participation based on strong fundamentals, better results can be expected.”

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