Publication of the "Corporate Governance Data Trends" Report
The Center for Corporate Governance Development at Deloitte Korea Group announced on July 14 that it has published the fifth edition of its "Corporate Governance Data Trends," an analysis of the governance practices of domestic companies listed on the Korea Exchange.
This report analyzes the compliance rates of 15 key indicators found in the corporate governance reports submitted by 498 listed companies (excluding financial firms) with assets of 500 billion KRW or more for the 2024 fiscal year.
According to the analysis, the average compliance rate for key corporate governance indicators was 54.6%, representing an improvement of 5.1 percentage points compared to the previous year. Compliance rates increased across all asset size categories. In particular, companies with assets between 500 billion KRW and 1 trillion KRW, which are in their second year of mandatory disclosure, saw their compliance rate rise by 9.1 percentage points to 44.7% year-on-year.
By indicator, "providing predictability regarding cash dividends" (42.2%) and "issuing a notice of shareholders' meeting four weeks in advance" (38.6%) showed notable improvements, rising by 25.4 percentage points and 9.7 percentage points, respectively, compared to the previous year. On the other hand, "adoption of cumulative voting" (3.2%) and "whether the chairperson is an outside director" (13.5%) continued to record low compliance rates, indicating a need for more diligent adherence to these key indicators.
Kim Hanseok, head of the Center for Corporate Governance Development at Deloitte Korea Group, stated, "The rise in the average compliance rate demonstrates that companies are enhancing their governance capabilities." He added, "In particular, there is an improving trend in newly designated key indicators in their second year, such as 'providing predictability regarding cash dividends' and 'the board of directors not being composed of a single group,' showing that the revisions to the third edition of the Corporate Governance Report Guidelines are gradually taking hold." He further noted, "However, for items that still show insufficient compliance, it seems necessary to review measures to ensure adherence."
According to the report, seven key indicators, including ▲adoption of cumulative voting (3.2%), ▲whether the chairperson is an outside director (13.5%), and ▲establishment and operation of a CEO succession policy (34.5%), had average compliance rates below 50%. In particular, "adoption of cumulative voting" recorded the lowest compliance rate among all key indicators, indicating that companies remain reluctant to adopt this practice. In contrast, six indicators, including ▲securing accounting experts for internal audit organizations (88.2%), ▲implementation of electronic voting (80.7%), and ▲establishment of internal control policies (76.7%), showed compliance rates above 60%. This was attributed to the fulfillment of legal obligations.
The report also analyzed the compliance status of listed companies regarding the 2025 Corporate Governance Report priority inspection items suggested by the Korea Exchange. Among these, "establishment and operation of risk management and internal control policies" (average 91.9%) and "quarterly meetings between internal audit organizations and external auditors" (63.9%) showed relatively high compliance. However, "providing predictability regarding cash dividends" had a lower actual implementation rate (42.2%) compared to the rate of inclusion in articles of incorporation (60.8%). "Establishment of shareholder protection policies" (29.1%) and "plans for protecting minority shareholders" (12.7%) also remained insufficient.
In addition, while a majority of companies (82.5%) had established internal audit departments, only 48.8% had secured the level of substantive independence necessary for effective internal audit operations. The "value enhancement plan (Value-up)" indicator also showed low levels of voluntary disclosure (19.3%), board participation (18.1%), and communication (16.5%).
Kim Hanseok emphasized, "Starting in 2026, all companies listed on the Korea Exchange will be required to publicly disclose their corporate governance reports. These companies should closely assess the operation of their boards and audit committees and establish systematic monitoring and response measures to meet related requirements." He added, "This report can serve as a foundational resource for companies to review their governance systems, compare and benchmark with peers, set directions for voluntary improvement, and link with ESG management."
Meanwhile, this edition of the report also covers major regulatory trends in the first half of the year, such as "prospects for corporate governance reform under the new administration." The new administration has identified the protection of shareholder rights and enhancement of governance transparency as key priorities, pledging to restore trust in the capital market and establish fair market order as part of its presidential campaign promises. In line with this policy direction, companies are encouraged to develop effective strategies to strengthen accounting transparency, expand communication with shareholders, and enhance internal controls.
The full text of the fifth edition of "Corporate Governance Data Trends," along with card news and video news, is available on the Deloitte Korea Group website. Since its establishment in 2014, the Center for Corporate Governance Development at Deloitte Korea Group has supported the performance of board and audit committee duties at domestic companies through various publications, including ▲Corporate Governance Insights ▲Corporate Governance Data Trends ▲Corporate Governance Resource Guide ▲Korean translations of Deloitte Global Reports, as well as seminars and webinars.
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