The Asian Corporate Governance Association (ACGA) has urged Korea’s National Assembly to approve revisions to the Commercial Act, broadening corporate directors’ fiduciary duties to include accountability to shareholders. The Hong Kong-based non-profit, representing 101 members managing USD40tr in assets, emphasised the amendments would strengthen board governance and rebuild foreign investor trust.
ACGA’s letter criticised governance practices in Korea’s family-controlled conglomerates, citing issues like mergers and misuse of treasury shares that disadvantage minority shareholders. It warned that continued unfair practices could hinder market development and damage Korea’s global standing. The organization also expressed concern over the declining weight of the Korean market in the MSCI Emerging Markets Index, dropping from 16.1% in 2014 to 9.1% in 2024, potentially impacting investor perceptions.