"Companies Must Address Shareholder Activism Through ESG Management"

KCCI and KIC Hold 'ESG and Shareholder Rights Seminar'

As global ESG investment institutions demand active ESG management, a recommendation has emerged that companies should prepare shareholder activism response strategies, such as communicating with investors about non-financial information on a regular basis.

The Korea Chamber of Commerce and Industry (KCCI), in collaboration with Korea Investment Corporation (KIC), held the seminar "ESG and Shareholder Rights: Global Trends and Domestic Corporate Response Measures" on the 15th at KIC headquarters in Jung-gu, Seoul.

Jung Eun-su, CEO of Schroder Korea, who gave the first presentation, explained the current status of ESG investments by global asset management firms and cases of exercising shareholder rights. CEO Jung said, "Investing in companies that practice good ESG management has now become a standard principle," adding, "Investors, including asset managers, actively try to influence management to enhance the long-term value of their investments."

Choi Jin-seok, head of the Responsible Investment Team at KIC, introduced recent key issues in exercising shareholder rights and trends related to shareholder rights exercises by global institutional investors such as sovereign wealth funds and pension funds. Choi said, "Issues related to exercising shareholder rights, such as climate change, board diversity, and dual-class voting rights, are becoming more diverse," and added, "KIC plans to enhance the value of investment assets through exercising shareholder rights by collaborating with international responsible investment organizations and building networks with global financial institutions, sovereign wealth funds, and pension funds."

Seoul Jung-gu Korea Chamber of Commerce and Industry Building Exterior [Photo by Korea Chamber of Commerce and Industry]

The final presenter, Jung Sung-yeop, Korea representative of Morrow Sodali, gave a presentation on how companies can effectively respond to the exercise of shareholder rights. Morrow Sodali is a global advisory firm that provides strategies on voting rights and governance to companies. CEO Jung emphasized, "Shareholder proposals by activist funds have significantly increased in Korea as well," and added, "In Korea, IR activities are limited to explaining performance and outlook, but it is important to consistently communicate with investors about non-financial information."

Jin Seung-ho, president of KIC, said, "Exercising shareholder rights, a pillar of responsible investment, is becoming increasingly important," and added, "As a leading global institutional investor, KIC plans to further strengthen the exercise of shareholder rights and serve as a bridge connecting domestic companies and overseas investors by utilizing its global network."

Woo Tae-hee, executive vice chairman of KCCI, said, "With the mandatory disclosure of domestic ESG information scheduled for after 2026, ESG management is no longer just an investment trend but directly linked to corporate survival," and added, "It is necessary to enhance corporate value through active ESG management and adopt a strategic approach to respond to shareholder activism."

KCCI plans to release the lectures on its ESG platform "Eusseuk" and its YouTube channel at a later date.

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