Below is an excerpt from ISS’ recently released 2020 Korea Proxy Season Review. The full report is available to institutional subscribers by logging into ISS Link then selecting the Governance Exchange and its Report Center tab and to corporate subscribers by logging into Governance Analytics then selecting the Governance Exchange and the Report Center tab.
During the 2020 proxy season, a total of just over 1,400 companies covered by ISS held their annual general meetings (AGMs) in February and March, a 2.6 percent increase on a year-over-year basis. In line with previous years, the majority of the meetings were held over the last seven business days of March, with the highest number of meetings held on a single day reaching 437 this year, compared with 345 in 2019.
Despite the government’s ongoing facilitation plan seeking to break up meeting concentration over recent years, the 2020 proxy season marked another extremely concentrated year, partly because the National Assembly reverted the passing of amendments in key Presidential Decrees at the last minute. Out of the total of companies covered by ISS, 93 percent held their AGMs during the last seven days of March in 2020, a slight increase compared with that of previous year (90 percent).
Historically, Korean AGMs have been concentrated in the last seven business days of March with peak day(s) typically being the last two Fridays of the month. Nonetheless, while the percentage of companies holding AGMs in the last seven days of March remains high at 93 percent and when compared with just 70 percent in 2016, the last two Fridays of the month of March no longer hold the highest concentration of AGMs, as the number of meetings on these particular days decreased to 44 percent in 2020 from 73 percent in 2016.
By: Candice Kim & Yoo Shin Choi, ISS Governance Research