FSS Announces Results on Public Fund Voting Rights Exercise, ‘[Edaily Reporter Kim Kyung-eun] In the second quarter, the voting rights exercise rate for Korean public funds was recorded at 92.5%. The rate of opposition was 5.7%, which is still low compared to major pensions.’,
The Financial Supervisory Service (FSS) stated in their announcement on the 10th that the voting rights exercise rate for public funds in the second quarter was 92.5%. The rate of opposing votes was 5.7%, slightly higher than the previous quarter’s 5.0%, but still lower compared to major pensions.
Looking at the voting rights exercise of major pension funds, last year the National Pension Service showed a high exercise rate of 99.8% with an opposition rate of 21.8%. Meanwhile, the Government Employees Pension Service had a voting rights exercise rate of 93.9% and an opposition rate of 11.4%.
This data was gathered from the voting rights exercise records disclosed by 17 public fund management companies on 62 corporations and 251 agenda items (with overlaps among management companies) through their second-quarter business reports.
The FSS emphasized, “Considering this inspection focused on public fund management firms with established infrastructure, each management company must take all necessary measures to faithfully exercise fund voting rights for the regular shareholder meetings season in the first quarter of 2025.”
The voting rights exercise rate among 14 management firms that adopted the Stewardship Code was 99.3%, higher than the 60.9% rate of firms that did not adopt the code. Specifically, non-adopters like AK Partners (0.0%) and IGIS (82.6%) showed low exercise rates.
The FSS plans to establish a ‘Comparison and Disclosure System for Fund Voting Rights by Management Company’ by 2025 to support investors in making diligent trustee judgments. Additionally, they intend to promote healthy corporate governance culture among managers through the disclosure of voting rights exercise status on major agenda items by management companies.