K-Capital Market Committee of Democratic Party: "Stewardship Code Evaluation Scores to Be Reflected in National Pension Fund Asset Entrustment"

Briefing by the Financial Services Commission and Financial Supervisory Service
"Strengthening the Stewardship Code Is Essential"

The Democratic Party's K-Capital Market Special Committee announced on March 5 that it will actively demand shareholder return policies from companies suspected of intentionally suppressing their stock prices with a price-to-book ratio (PBR) below 1, and will also require activities aimed at enhancing corporate value to be reflected in management policies in order to resolve the issue of stock price suppression. To this end, the government revealed plans to evaluate and monitor stewardship code activities.

Assemblyman Kim Namgeun of the Democratic Party stated at the K-Capital Market Special Committee briefing held at the National Assembly that, "Pension fund managers, who are now acting more as market players than ever before, are showing a strong commitment to addressing the chronic issue of stock price discounts," but added, "Incentives are needed to achieve this." He continued, "Stewardship code activities should be reflected in the process of selecting and commissioning pension fund managers."

(Seoul=Yonhap News) Shin Hyunwoo reports = Oh Ki-hyung, chairman of the Korea Premium K-Capital Market Special Committee of the Democratic Party of Korea, is attending the special committee's work briefing held at the National Assembly Members' Office Building on March 5 and conversing with committee member Kim Namgeun. The work briefing was attended by the Financial Services Commission, Financial Supervisory Service, Ministry of Health and Welfare, and National Pension Service. 2026.3.5 nowwego@yna.co.kr (End)

Assemblyman Oh Kihyung commented, "Among the key tasks for the advancement of the capital market, strengthening the stewardship code is included as a national policy assignment. We will examine whether the stewardship code system is being properly implemented."

The stewardship code is a voluntary guideline designed to ensure that institutional investors fulfill their fiduciary duties in the asset management process. Although it was first introduced by the National Pension Service in 2018, there have been criticisms that it does not function effectively.

The briefing was also attended by officials from the Financial Services Commission, Financial Supervisory Service, Ministry of Health and Welfare, and the National Pension Service, who reported on related matters.

After the briefing, Assemblyman Kim stated, "When the National Pension Service entrusts asset management to institutional investors, the Financial Services Commission will evaluate whether asset management companies have diligently engaged in stewardship code activities, and these evaluation scores will be reflected when assets are allocated."

He added, "This year, during the shareholder meeting season, whether asset managers were active will likely be reflected next year when asset management companies are allocated entrusted assets. More funds will be entrusted to those who performed well, while companies that underperformed might see their allocation reduced—for example, from 10 trillion won to only 5 trillion won."

He also said, "We will consider expanding the scope of stewardship code activities. Currently, it applies to stock investments, but we will also introduce it to address the predatory behavior of private equity funds."

Regarding concerns that expanding stewardship code activities could undermine private sector autonomy, Assemblyman Oh responded, "The stewardship code itself is a matter of private autonomy, but was the system truly successful after its introduction in 2018?"

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