South Korean stocks, already this year’s best performers among the world’s major markets, are becoming a magnet for foreign investors as bold regulatory reforms to lift valuations and empower minority shareholders gain traction.
Just this month, policymakers voted in favor of pivotal law changes to make board members legally accountable to all shareholders. They are now focusing on the next wave of reforms — including improvements to the voting system for selection of board members, and reducing treasury stock holdings — all with the goal of reining in the nation’s many family-run conglomerates, or chaebols.