ESG Viewpoint: Evaluating ESG Progress at South Korean companies
Insights

ESG Viewpoint: Evaluating ESG Progress at South Korean companies

ESG standards in South Korea have been a concern for international investors for some time. The market continues to lag other countries in the region, both from a regulatory standpoint and from expected company practice, especially as other countries improve their ESG standards.

We have consistently engaged with South Korean companies for many years and have previously visited Seoul in the spring of 2018 and March of 2014, both as part of an international investor delegation led by the Asian Corporate Governance Association (ACGA) – a group that works with companies, regulators, and other investors to implement effective corporate governance throughout Asia. Following President Yoon’s appointment in 2022, there were questions as to how he would work on addressing both institutionalised corruption and domestic human rights, including gender equality, discrimination, and LGBTQIA+ rights. In line with his campaign promises, no improvements have materialised thus far, meaning change at companies will rely heavily on investor engagement and not through regulation.

While President Yoon represents a more conservative view on matters such as ESG compared to his predecessor, it is unlikely he will be able to effect much change in that direction given the National Assembly is still controlled by the liberal Democratic Party and likely will continue to be until April 2024 when the next general election takes place.

Despite that, President Yoon will still be able steer the direction of any regulation and enforcement. For example, it’s possible we will still see movement on financial services regulation or employment law – after all, his campaign promises included an emphasis on deregulation and reducing red tape. From a corporate governance perspective, he’s pledged to introduce measures that could insulate management from investors, which could include things such as allowing for dual class share structures with unequal voting rights.

Interested in learning more?

We visited Seoul in 2022 as part of a delegation organised by the Asian Corporate Governance Association.  Progress around ESG issues has been slow with improvement notably needed around diversity, equality and inclusion.  Download the full ESG Viewpoint to discover more.

24 March 2023
Share article
Share on linkedin
Share on email
Key topics
Related topics
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Key topics
Related topics

PDF

ESG Viewpoint: Evaluating ESG Progress at South Korean companies

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

Related insights

21 May 2024

Pauline Grange

Portfolio Manager, Global Equities

Water in crisis – searching for solutions

With too much, too little or too toxic water the world is facing a water crisis. We explore key issues and challenges before highlighting some of the companies promoting better water management.
Read time - 3 min
26 April 2024

Albertine Pegrum-Haram

Senior Associate, Responsible Investment

Decarbonising Steel: redefining the value chain and the role of iron ore miners

The need to decarbonise is driving innovation in the steel sector, which in turn is reshaping the global value chain for one of its key inputs – iron ore.
Read time - 1 min
23 April 2024

Neeti Shah

ESG analyst

Rana Plaza 11 years on

2013’s disaster served as a wake-up call to the garment industry. How have factory conditions changed and how are we tackling related risks through engagement?
Read time - 3 min
22 May 2024

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

UK Real estate – Overview Q1 2024

Total returns for the UK commercial property market turned positive in Q1 2024.
Read time - 3 min
21 May 2024

Pauline Grange

Portfolio Manager, Global Equities

Water in crisis – searching for solutions

With too much, too little or too toxic water the world is facing a water crisis. We explore key issues and challenges before highlighting some of the companies promoting better water management.
Read time - 3 min
20 May 2024

Rosa Fenwick

Head of Core LDI Portfolio Management

Euro LDI Survey – Q1 2024

In the quarterly Columbia Threadneedle Investments LDI Survey we poll investment bank trading desks on various topical questions around monetary policy and longer-term rate expectations.
Read time - 6 min
true
true

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Funds and Prices

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Our Capabilities

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.