Lee Bok-hyun, Governor of the Financial Supervisory Service, met with CEOs of 23 asset management companies and urged them to exercise "responsible voting rights" and "strengthen risk management."
At the asset management CEO meeting held on the 29th at the Korea Financial Investment Association in Yeouido, Seoul, Governor Lee stated in his opening remarks, "As good and faithful managers, I ask you to operate and manage customer assets with pride and a sense of duty, standing at the forefront of national asset growth and asset management."
He continued, "Recently, we revised the voting rights exercise guidelines for asset management companies, and I believe that by actively paying attention and responsibly reviewing internal regulations, processes, and organizational operations for deficiencies and differences, it will help improve each company's internal policies." He emphasized, "In particular, I hope you will strive to enhance your role as monitors to protect shareholder rights in widely held companies."
He also said, "Please ensure active post-management such as securing rights and controlling funds, and faithful recovery of investment funds. Especially, check and improve the process at each investment stage to prevent repeated insolvency, and request fair valuation so that fund performance is transparently disclosed to investors."
Governor Lee also pledged institutional support such as fostering a competitive market environment, improving access to fund information, and rationalizing fund operation regulations.
At this meeting, progress since the first event held earlier this year in February was shared. Previously, the Financial Supervisory Service had continuously exchanged opinions with the industry and established strengthened disclosure standards for ESG (Environmental, Social, and Governance) funds last October, and completed revisions to the voting rights guidelines. Key improvements included promoting the establishment of a database (DB) for voting rights exercise disclosure information, presenting best practice standards for internal controls such as policies related to voting rights exercise and disclosure as "general principles," decision-making systems, and procedures.
Additionally, reflecting industry requests, the obligation to report overseas direct investments, which had been an excessive burden, was eased. The prior reporting obligation for investments in offshore financial companies (SPCs) and the establishment of overseas branches was changed to post-reporting, and a special case was introduced for investments in offshore financial investment companies by capital contribution request method.
The CEOs of the asset management companies attending the meeting stated, "We request the authorities' continuous interest and support for revitalizing the fund market and the faithful exercise of voting rights by asset management companies," and "We will continue industry efforts to restore trust in the asset management industry and protect investor interests."
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