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Korea's market watchdog urges companies to listen to shareholders seriously
The Financial Supervisory Commission of Korea (FSC) said Thursday that companies should pay more attention to the voices of shareholders as the government seeks to boost the domestic stock market through reforms to encourage higher shareholder returns. "I ask companies to seriously listen to the voices of shareholders and actively communicate with them to understand their legitimate demands," said Lee Bok-hyun, director of the Financial Supervisory Commission. "I ask that companies actively share with their shareholders as they continue their efforts to enhance shareholder value and establish a sound governance structure," Mr. Li said at a meeting with activist funds, representatives of listed companies and market experts.
SEOUL (Reuters) - Companies should pay more attention to the voices of shareholders as the government seeks to boost the nation's stock market with reforms to encourage greater shareholder returns, the head of South Korea's Financial Supervisory Service said on Thursday.
"I ask the company to seriously listen to the voices of its shareholders and actively communicate with them to understand their demands for a car name," said Lee Bok-hyun, director of the Financial Supervisory Authority (FSA).
"I ask that the Company actively share with its shareholders as it continues its efforts to enhance shareholder value and build a sound governance structure," said Mr. Li Fuxian at a meeting with activist funds, listed company representatives and market experts.
The Korean government has been trying to solve the so-called "Korea discount" (韓國折釦)." Korean discount button" refers to the fact that local companies are often valued lower than their global peers due to factors such as low dividend payout ratios and the dominance of opaque plutocratic groups.
South Korea announced a corporate reform program in February aimed at increasing the value of listed companies, and will release detailed guidelines for the program next month.
After the initial program failed to meet market expectations, the Korean government is preparing additional measures, including tax incentives, to enhance the Enterprise Value Promotion Program.
(Reporting by Jihoon Lee; Editing by Ed Davies)
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