South Korean regulatory bodies have launched a new task force to revise existing guidelines for asset managers on the exercise of voting rights, in a bid to strengthen the effectiveness of shareholder engagement. The Financial Supervisory Service (FSS) and Korea Financial Investment Association (KOFIA) have said that the current guidelines, which were last updated in June 2016, have not kept pace with evolving markets and corporate governance practices. The updated guidelines will provide clearer standards on how asset managers should exercise their voting rights on major corporate governance matters, such as board elections, executive remuneration, and mergers and acquisitions. The task force also aims to improve transparency in asset managers’ voting disclosures. The task force includes representatives from the Korea Capital Market Institute (KCMI) and seven asset management firms.
