Any institutional investors from Korea and abroad can participate in the Korea Stewardship Code, Principles on the Stewardship Responsibilities of Institutional Investors (”Principles”), if they have a shareholding in a locally listed company.
Hence, a foreign institutional investor can also participate in the Principles regardless of its nationality or the country where it is headquartered, if it has made investments in the listed companies in Korea. An institutional investor managing a portfolio invested in overseas-listed corporations only is not an ‘explicit’ target participant, but it can still decide to participate in the Principles ‘based on its own discretion.’
As for private equity funds, both limited partners and general partners can participate in the Principles as asset owner and asset manager, respectively. Discretionary investment businesses are also target participants even though they are not allowed to be delegated to vote as per the relevant local law (Financial Investment Services and Capital markets Act). They can still fulfill their fiduciary duties via other forms of shareholder activities.
No, it is not.
Institutional investors can decide how to implement the Principles. That is, they can decide with their own discretion which Principles to adopt based on their investment philosophy and other circumstances. Depending on the asset class, investment time horizon, management methods, etc., the extent and level of implementation may be decided.
Still, it is required to explain the reason(s) and alternative(s) to the clients and beneficiaries under the ‘comply or explain’ approach if there is any Principle that is not implemented. In case different Principles and implementation methods are adopted across asset classes or specific investment funds, it is desirable that the reason behind different treatment and the concrete details be disclosed along with future timeline and plans.
You can modify the submitted participation plan and re-submit the updated one, taking the following steps on this website:
1) Participants List > Preliminary participants
2) Click on the name of the company in the list > Update > Enter the password
3) Update the participation plan and submit the same
There is no disadvantage in submitting an updated plan. The updating history and the date of latest update are only recorded and disclosed.
If you wish to withdraw the submitted participation plan, please contact the KCGS Stewardship Code Center at email@example.com or +82-2-6951-3902.
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