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KCCI Chairman Calls for Measures to Address Side Effects of Stewardship Code
Pointing out Discrepancy between Theory and Reality
KCCI Chairman Calls for Measures to Address Side Effects of Stewardship Code
  • By Michael Herh
  • April 3, 2019, 08:36
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KCCI Chairman Park Yong-man delivers a speech at an economic forum held on April 1.

Korea Chamber of Commerce and Industry Chairman Park Yong-man has pointed out that there should be a reference for the National Pension Service’s stewardship code application.

“I have advocated stewardship code introduction so that companies’ deviations can be prevented by institutional investors’ duty fulfillment,” he said on April 1, adding, “The code has just been introduced and we are currently witnessing some discrepancy between its principles and the reality.”

The National Pension Service recently blocked Hanjin Group chairman Cho Yang-ho from serving another term as an inside director of Korean Air by using the stewardship code. Under the circumstances, entrepreneurs are expressing concerns over mounting risks with regard to the repealed shadow voting and the strengthened External Audit Act as well.

“We need to make efforts so that the new system can be run for its intended purposes and I am going to propose some complements to the National Assembly so that side effects and uncertainties resulting from the lack of reference can be dealt with,” he said.

When it comes to inter-Korean economic cooperation, he remarked that no investment can be made in North Korea in the presence of sanctions against the North. “Even if the North opens itself, the initial opening will be limited to 28 special economic zones, and enterprises should not be at the forefront,” he said.