"Significant Progress in Korea’s Capital Market" — ACGA Sends Letter of Appreciation to Lee Jaemyung Administration

The Asian Corporate Governance Association (ACGA), whose members include BlackRock, Vanguard, and the National Pension Service, has sent an unprecedented letter of appreciation to the South Korean government and National Assembly. While highly commending the efforts to reform the capital market—such as the amendments to the Commercial Act, improvements in corporate governance, and value-up policies implemented over the past year—the association also urged that the momentum for reform be sustained.

According to the financial investment industry on June 9, ACGA sent a public letter on this day addressed to the National Assembly and the government of the Republic of Korea. ACGA is an international organization that provides research and advisory services to improve corporate governance and enhance ESG (environmental, social, and governance) standards in the Asia region. Currently, 105 member institutions, including BlackRock, have joined ACGA, and their combined assets under management (AUM) total approximately USD 40 trillion. It is extremely rare for ACGA to send a public letter of appreciation to a specific government.

In the letter, ACGA stated, "We highly appreciate the meaningful progress made by the Korean authorities in promoting corporate governance reform over the past year," and added, "We are paying close attention to the strong momentum surrounding Korea's corporate governance reform agenda." Specifically, the association cited the introduction of directors' fiduciary duties to shareholders through amendments to the Commercial Act, the adoption of independent directors, and the strengthening of procedures for appointing audit committee members as major achievements.

ACGA assessed, "These reforms are a clear signal to global investors of Korea's commitment to building a more transparent, accountable, and internationally aligned capital market." The association also welcomed the Financial Services Commission’s immediate adoption of the "same-day disclosure of general meeting voting results"—a suggestion ACGA made in March last year—during this year’s general meeting season, noting that this is an important step in bringing Korean market practices closer to the standards of major advanced markets.

Yonhap News Agency

The association also positively evaluated shareholder-friendly policies such as the value-up initiative currently being pursued by financial authorities. ACGA stated, "These are consistent and systematic efforts to improve the quality of disclosure, strengthen board accountability, and enhance the investment appeal of Korea’s capital market," adding, "We are well aware that these achievements are the result of significant effort and determination by the Korean government and regulatory authorities."

However, the association emphasized that in order to remove the "Korea discount" label and achieve a "Korea premium," it is essential to maintain the momentum for reform. ACGA remarked, "Maintaining this reform momentum is crucial to fully realizing the outcomes of reform for both domestic and international investors," and added, "We will continue to engage in close and constructive cooperation with the Korean government and regulatory authorities going forward."

On this day, Lee Eogwon, Vice Chairman of the Financial Services Commission, posted on X (formerly Twitter) an article titled "Korean Capital Market Reform Recognized by Global Investors: ACGA’s Public Letter of Appreciation." Vice Chairman Lee stated, "It is extremely rare for ACGA to send such a letter of appreciation, and as we mark the first anniversary of the current administration, I feel proud and grateful to receive such a meaningful letter," adding, "The Financial Services Commission will continue to strive to ensure that Korea’s capital market becomes a truly world-leading market."

This content was produced with the assistance of AI translation services.