Shareholder Activism in Korea: A Review of How PSPD Has Used Legal Measures to Strengthen Korean Corporate Governance

Abstract

Shareholder activism has recently begun to play a significant role in reshaping the corporate governance of Korean companies. The Peoples Solidarity for Participatory Democracy (PSPD), a public interest group, has been at the forefront of leading shareholder activism in Korea. It is believed that PSPDs initiatives will have a lasting influence on the Korean legal system governing corporate governance because for the first time, various minority shareholders rights that had remained dormant for most of Koreas modern history have finally been utilized. This Article examines how those involved in shareholder activism in Korea have been able to use legal measures to improve corporate governance. It will primarily draw upon the experience of PSPDs activities in recent years. This article will also examine the shortcomings that currently exist under the current legal system and will offer some possible regulatory and policy solutions.