• SK FSS issued the results of an inspection on the status of voting rights exercise and disclosure by asset management companies, as well as its future supervisory plan.
• Follows SK FSS April 2023 set up a task force to revise voting guidelines.
• Also follows FSS March 2024 held meeting with asset management firms.

Overview of Inspection Results

• SK FSS found that 96.7% of inspected companies had not reported detailed reasons for exercising/not exercising voting rights; 44.2% had not disclosed detailed guidelines stipulating the basis for each agenda; only 18.6% reflected revised voting guidelines.
• Most companies failed to comply with KRX disclosure standards, e.g., insufficient description of agenda names (89.8%), no description of agenda types (85.0%).
• The adequacy of exercising voting rights could not be determined for 71% of the inspected agenda due to insincere disclosure on reasons for exercising voting rights.

Supervisory Plan

• SK FSS will encourage each asset management company to make improvements in deficiencies identified during this inspection, continue to conduct relevant inspections.
• Encourage the asset management industry to join and practice the stewardship code.
• Provide guidance to ensure that asset management companies serve as sincere trustees contributing to enhancing corporate value, improving governance structures