Corporate Cleanup in South Korea Fails to Impress Foreign Funds
- Korean firms remain weak in M&A logic, director independence
- ROE on Kospi members fell to 3.2% from 4.3% at end-2019
This article is for subscribers only.
Ever since President Moon Jae-in came into power three years ago, South Korea has been trying to reduce its reputation for having a stockmarket dominated by family controlled conglomerates that lack accountability. Fund managers say efforts so far have failed.
One reason for the lack of real change: Many companies seem to view corporate governance as a “box ticking” exercise, said Ronnie Lim, an engagement specialist who handles active and sustainable investments at Robeco, a long-only firm with 155 billion euros ($182 billion) assets under management .