KCGS 한국ESG기준원

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.