Starting in March of next year, electronic shareholder meetings will be mandatory for listed companies with assets exceeding 2 trillion won. Yoon Soo, CEO of the Korea Securities Depository, described this initiative not merely as a change in meeting format but as a crucial test for advancing the capital market and enhancing shareholder rights.
"While the advancement of the capital market has primarily focused on amendments to capital market laws, electronic shareholder meetings represent a significant system for strengthening shareholder interests through revisions to corporate law," he said. "Since this is being implemented for the first time in Korea, ensuring its stable establishment is of utmost importance."
The role of the Korea Securities Depository will also change significantly with the full implementation of electronic meetings. Previously focused on back-office tasks such as trading and settlement, the organization will now provide services that allow shareholders to access its system directly to view meetings and exercise their voting rights. Yoon emphasized, "Electronic shareholder meetings will be the first service where the Korea Securities Depository interacts closely with the public, making system stability a critical challenge."
Interest from listed companies is already high, particularly among those with large shareholder bases, who are closely monitoring the development of electronic meeting platforms. Yoon noted, "Samsung Electronics has been inquiring about the platform testing schedule, indicating significant interest. For companies with many shareholders, even minor issues can lead to major disruptions, so we are prioritizing stability as our foremost task."
The Korea Securities Depository plans to conduct pilot operations this summer, gradually unveiling the platform starting in September, with a goal of completing system checks before next year's regular shareholder meetings. Additionally, various measures are being considered to alleviate the concentration of meetings on specific dates, known as 'super shareholder meeting days,' including the distribution of meeting schedules and expanding pre-registration options.
Yoon stated, "Electronic shareholder meetings will not only increase shareholder participation but also provide companies with a more efficient way to conduct meetings. We are committed to building a platform that all market participants can use with confidence, ensuring that a new shareholder culture can be established securely."
* This article has been translated by AI.
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