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Notice 2014 Proxy voting result of Institutional Investors in Korea 2014.12.05
Korea Corporate Governance Service (KCGS) has conducted its annual research on the disclosure of proxy voting records by the Korean private institutional investors. * The study covered the proxy voting results of 82 institutional investors at the shareholders' meetings of 328 companies.

* According to the Financial Investment Services and Capital Markets Act, institutional investors who hold shares of a company whose value is equal to or more than 1) 5% of their total asset or 2) 10 billion KRW are required to disclose their voting records.
** Public Pension funds such as National Pension Service(NPS) are not included in this research.

Only 1.4% of votes exercised by institutional investors was against proposed agendas

‘Votes Against’ ratio was 0.4% in 2012 and 0.9% in 2013. Even though it showed a gradual increase, it is still lower than 9.4%, that of NPS, or the ratio that KCGS recommended shareholders vote against, which was 18.7%.

75.9% of ‘Votes Against’ was concerned with director election agendas including independent directors, audit committee members and executive directors.

Over 70% of institutional investors voted for the whole agenda items proposed by the management.

60 institutional investors(73.2%) voted for the whole agenda items while only 22 voted against at least one item.

JP Morgan asset management (Korea) has showed the highest ‘Vote Against’ ratio, 23.7%. Top 10 institutional investors, by the number of ‘Votes Against’ are either independent ones or foreign ones.

For more information, please contact us below.
Aidan Yoon, Senior Analyst, 82-2-3775-3714, yinth@cgs.or.kr
Contact through the Email would be preferred.
Market Square of Korea Exchange Seoul Office, 76 Yeouinaru-ro, Yeongdeungpo-gu, Seoul, Republic of Korea
KCGS

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