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The Korea Herald
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THE INVESTOR
March 29, 2024

Finance

JKL Partners first to adopt Korean Stewardship Code

  • PUBLISHED :May 25, 2017 - 17:43
  • UPDATED :May 25, 2017 - 17:43
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[THE INVESTOR] Korean private equity firm JKL Partners has become the first institutional investor to adopt the nation’s newly introduced Stewardship Code, a set of guidelines for more responsible investment practices among professional investors.

The corporate governance code was unveiled in December last year but institutional investors have been reluctant to adopt it citing some disclosure requirements.

JKL said it is adopting the code considering the benefits promised by financial organizations such as the state-run Korea Development Bank.

The possible adoption by the National Pension Service, the nation’s largest institutional investor and the world’s third-largest pension fund, is also said to have affected the firm’s decision.

The Stewardship Code that was first introduced in the UK in 2010 is now adopted by 12 countries around the world. The Korean scheme, designed by the state-run Korea Corporate Governance Service, consists of seven guidelines, including disclosing more than 5 percent of stake holding in a company as well as regular monitoring of companies they invest in.

Renewed attention is being paid to the new scheme amid a trial on NPS’ backing of the controversial merger of two Samsung companies in 2014 despite resistance from some investors. The merger deal was considered to be aiming at consolidating Samsung heir Lee Jae-yong’s control over Samsung Group before the pending leadership transfer at the nation’s largest conglomerate.

President Moon Jae-in also pledged to expand the adoption of the code during his election campaign.

Founded in 2001, JKL operates nine funds with 881.9 billion won (US$789.20 million) in assets. The private equity firm and Harim Group acquired Pan Ocean, Korea’s shipping company.

By Park Ga-young (gypark@heraldcorp.com)

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