Corporate Governance Forum "For Corporate Value-Up, Need to Specify Responsible Parties and Present Role of National Pension Service"

Chairman Lee Nam-woo, "Duty of Loyalty of Directors to Shareholders Needed Through Commercial Act Revision"
"National Pension Service Must Lead for Value-Up Success"

The Korea Corporate Governance Forum stated on the 3rd that for the success of the corporate value-up program, a clear responsible party for enhancing corporate value must be specified, and an active role for the National Pension Service should be presented.

The 2nd seminar on support measures for corporate value-up to boost the Korean stock market was held on the 2nd at the Korea Exchange. Jeong Jiheon, Executive Director of the Management Support Headquarters at the Korea Exchange, is presenting on "Progress and Future Plans for Promoting Corporate Value-Up Support Measures." Photo by Heo Younghan younghan@

On the 2nd, the Financial Services Commission and other related authorities held the second seminar on corporate value-up support measures at the Korea Exchange and announced guidelines for corporate value enhancement plans. In response, Namwoo Lee, Chairman of the Korea Corporate Governance Forum, said, "The draft guidelines are very detailed and show much thought," adding, "Once the guidelines are finalized in May, financial leaders, executives, and managers should actively step forward to persuade listed companies."

He continued, "We need an answer to who exactly is responsible for enhancing corporate value and protecting the investment value of common shareholders," emphasizing, "Only by clearly designating the responsible party can the effectiveness of the specific guidelines be guaranteed."

In fact, Japan has specified through its Corporate Governance Code that the company's board of directors has a 'fiduciary duty' to all shareholders. This clarifies that the board of listed companies is the entity entrusted with managing shareholders' money.

Chairman Lee pointed out, "To resolve the Korea discount, it is essential to introduce directors' duty of loyalty to shareholders through amendments to the Commercial Act and to implement clear investor protection measures such as mandatory cancellation of treasury shares," adding, "Listing only technical measures without a solid institutional foundation, such as specifying responsibility to shareholders, is unsustainable."

Furthermore, Chairman Lee said that the role of the National Pension Service is important for the successful establishment of corporate value-up. He stated, "The Japanese Government Pension Investment Fund (GPIF) played a midwife role in Japan's governance reform, changing the investment culture of the capital market through thorough application of the Stewardship Code," emphasizing, "Our National Pension Service should also become a pioneer in improving corporate governance." He added, "I hope there will be mention of the National Pension Service's specific role at the time the guidelines are finalized soon."