Corporate Governance Report Requirement Expanded to All KOSPI Firms; Compliance Rate at 47.8%

[Economy 365]

Starting this year, the requirement to submit corporate governance reports—which detail the transparency of shareholder protection and board operations—has been expanded to all KOSPI-listed companies. However, the average compliance rate among these firms stood at 47.8%, falling short of the halfway mark.

A comprehensive survey of 795 KOSPI-listed companies by Leaders Index showed that the average compliance rate dropped by 6.5 percentage points compared to last year.

In particular, the compliance rate for companies that submitted their reports for the first time this year was only 29.2%.

Among companies that have disclosed these reports for six consecutive years, POSCO Holdings recorded the highest compliance rate at 97.8%, followed by KT&G, SK Telecom, LG Innotek, and KT.

Of the 15 core indicators, the item with the lowest compliance rate was the adoption of cumulative voting, which can increase the board participation of minority shareholders; the compliance rate for this item was only 4.4% this year.

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