The Financial Supervisory Service (FSS) reported improvements in the voting practices of domestic asset management companies, noting increases in both voting participation and dissent rates. However, it highlighted the need for further enhancements, particularly among small and mid-sized firms, due to ongoing issues with formal disclosures and internal management systems.
On July 6, the FSS revealed that it had reviewed the voting records of 285 public and private asset management firms from April of last year to March of this year, covering a total of 46,827 proposals. The voting participation rate reached 91.8%, with dissent at 8.2%. This marks a steady increase from 79.6% in 2024 and 91.6% in 2025, while dissent rates rose from 5.2% to 8.2% over the same period.
Among the proposals, 38,602 (82.4%) were approved, 3,848 (8.2%) were opposed, and 4,377 (9.4%) were either not voted on or neutral. Dissenting votes were primarily concentrated in areas such as executive compensation (1,006 cases, 11.7%), amendments to articles of incorporation (1,200 cases, 9.2%), and the appointment and dismissal of directors and auditors (1,163 cases, 7.2%).
Seventy firms (25%) provided detailed reasons for their voting decisions and adhered to disclosure standards, an increase from 41 firms the previous year. However, 50 firms (17.5%) abstained from voting on all proposals, and 82 firms (29.0%) voted in favor of all proposals, although these numbers have decreased compared to last year.
The FSS also assessed the shareholder rights exercise systems of public asset management firms. Larger firms have strengthened their voting procedures through dedicated teams, decision-making bodies, and performance evaluations (KPIs), while smaller firms were found to lack adequate infrastructure.
The FSS recognized Samsung Asset Management, NH Amundi Asset Management, and VIP Asset Management as exemplary cases this year. Samsung Asset Management established a dedicated team, implemented KPIs, and enhanced its decision-making processes. NH Amundi Asset Management separated its voting committee and trustee responsibility committee, integrating shareholder activities into performance evaluations. Despite being a smaller firm, VIP Asset Management was praised for actively operating a dedicated team and engaging in shareholder letters and management discussions.
Conversely, Shinhan Asset Management, Woori Asset Management, and Samsung Active Asset Management were identified as needing improvements. Shinhan Asset Management repeatedly used the same wording for reasons supporting director appointments and lacked a separate decision-making body and KPI system.
Woori Asset Management had the highest rate of repeated voting reasons at 73.4% among large public asset managers, and its dedicated team and detailed guideline disclosures were found lacking. Samsung Active Asset Management also had a high rate of repeated voting reasons at 77.3%.
The FSS noted that most deficiencies were found among small private asset management firms and plans to enhance guidance on voting practices and disclosures for these firms in the future.
Additionally, a meeting with CEOs of asset management firms is scheduled for July 13 to foster consensus on fulfilling fiduciary duties and exercising shareholder rights diligently. In July and August, the FSS will hold briefings for public and private asset management firms to share inspection criteria and examples of best and poor practices.
* This article has been translated by AI.
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