Mandatory Electronic Shareholder Meetings for Companies with Over 2 Trillion Won in Assets Starting January

Companies listed on the stock exchange with total assets exceeding 2 trillion won will be required to hold electronic shareholder meetings starting in January, making it easier for shareholders to exercise their voting rights.

According to the Ministry of Justice on July 14, an amendment to the commercial law to introduce electronic shareholder meetings was approved at a Cabinet meeting chaired by President Lee Jae-myung.

The amendment aims to address the difficulties shareholders have faced in exercising their rights due to the concentration of shareholder meetings at specific times and locations, often referred to as 'Super Shareholder Meeting Day.'

As a result, the amendment mandates that companies with total assets exceeding 2 trillion won must hold electronic shareholder meetings, allowing domestic and international shareholders to participate and exercise their rights from anywhere. As of the end of last year, there were 210 companies with total assets exceeding 2 trillion won, including 201 on the KOSPI and 9 on the KOSDAQ.

The Ministry of Justice plans to conduct a mock electronic shareholder meeting in collaboration with the Korea Securities Depository in the second half of this year to help companies and shareholders understand and utilize the electronic meeting system. They aim to ensure a smooth implementation of the electronic shareholder meeting system starting January 1, 2027.

Minister Jeong Seong-ho stated, "The introduction of electronic shareholder meetings has created an environment where domestic and international shareholders can exercise their rights without barriers of distance and time. The Ministry of Justice will continue to work to enhance shareholder participation and facilitate closer communication between companies and shareholders."