"The 5% rule and opaque shareholders' meetings must change" Stewardship effectiveness questioned [On Site+]

At a Korea Corporate Governance Forum seminar, asset managers and capital market experts said Korea must reform shareholder meeting rules and capital market regulations for the stewardship code to work in practice.

They called for longer disclosure periods before shareholder meetings, easing the 5% rule, loosening shareholder proposal requirements, and improving large-shareholding reporting rules.

Speakers said stronger voting and engagement by institutional investors is essential to improve corporate governance and help narrow the Korea discount.