Seoul Agenda

12 October 2020
08:45 – 09:30
10:00 – 11:00
Plenary 1: Controlling shareholder influence on corporate value and minority shareholder rights

Korean companies are often controlled by individuals and families, and these could go beyond chaebols, covering small to medium companies.  In this session, we discuss how the actions of controlling shareholders could impact corporate valuations.  On the positive side, majority ownership could encourage long term corporate value creation and sustainable development; however, controlling shareholders could disproportionately benefit the majority and dominate board decisions without appropriate challenges and independent oversight.  We gain insights from experienced speakers who will share their experience in managing the challenges faced by minority shareholders in such circumstances.

11:00 – 11:30
Networking Refreshments
11:30 – 12:30
Plenary 2: Stewardship and engagement: practical implementation for effective outcomes

With the rise of stewardship codes around the world, particularly in Asia, the Korean market is paying close attention on the impact of stewardship activities on long-term corporate value through purposeful engagement. Since the concept of engagement is relatively new to most Korean executives and board members, many questions from corporate as well as investor sides arise. How will company deal with investors’ engagement requests? How do investors implement stewardship in practice? Is there an optimal engagement approach from investors’ perspectives? This session will explore these issues.

12:30 – 13:30
13:30 – 15:00
Hosted Sessions
Session A: Global trends in ownership & control: How should investors respond? Hosted by MSCI
15:00 – 15:30
Networking Refreshments
15:45 – 16:45
Plenary 3: Board duties and responsibilities in company subsidiaries and groups

The fact that a company is an affiliated firm with a business group may influence the functioning and responsibilities of the board of directors. It may also create many challenges including a conflict of interests between controlling shareholders and minority shareholders. The board of directors is responsible for responding these challenges. This session will explore the issues related to the management and supervision of subsidiaries, protection of minority shareholders and related party transactions.

16:45 – 17:45
Plenary 4: CEO succession planning and compensation

In principle, corporate board should take a fiduciary responsibility to initiate and oversee CEO succession process, minimising potential disruptions to the businesses and the organization. The board of directors should ensure a systematic succession process firmly in place and review it regularly. However, in emerging markets, CEO succession is often handled as a part of controlling family's affairs or political assignment, while boards have either little or no influence on the planning/decision-making process. Compensation for CEO by and large takes a similar root, where KPIs do not mean much or are not aligned with shareholder value creation. This session will discuss about how to solve the underlying issues. 

17:45 – 17:50
Closing Remarks
13 October 2020
08:30 – 09:30
Delegate Registration
09:30 – 09:40
Welcome Back!
10:00 – 11:00
Plenary 5: Related party transactions

Under the 2018 revised tax law, transactions with related parties must be conducted at arm’s length prices.  This is one step towards improving the transparency of related party transactions (RPT). In this session, we debate the value enhancing or destroying mechanisms created by RPT.  We discuss tunneling among firms belonging to business groups and additional measures that should be put in place to improve governance.  

11:00 – 11:30
Networking Refreshments
11:30 – 12:50
Hosted Sessions
Hosted Session: New Challenges and Opportunities 2020: ESG Integration and Management Strategy Sponsored by Deloitte

In a new business paradigm of sustainability, ESG is becoming one of the keys to new market innovation and business risk management. Corporates in Korea are trying to integrate ESG issues in their business in many ways. The session will provide an opportunity to explore how corporates and financial groups in Korea are interpreting and managing ESG risks in their business value chain.


12:50 – 13:50
13:50 – 14:50
Plenary 6: Capital allocation and efficiency

Management and board, as stewards of corporate resources, are obliged to prepare an effective capital allocation plan which should contribute to long-term growth/success strategies. A clear communication with shareholders is also their primary responsibilities. This simple—finance 101—notion does not seem to have been firmly in place as principles among emerging markets companies, leaving investors in dire disappointment at times due to value-destroying projects and/or persistently low payout. This session will dissect a couple of examples and discuss about the fundamental causes and ways to root out them.        

14:50 – 15:50
Plenary 7: Bridging the Sustainable Development Goals with real-world impact

How do the UN’s Sustainable Development Goals (SDG) relate to grass-roots business and investment? What is the relationship to ‘Environmental, Social and Governance (ESG)’ priorities?  What opportunities do the SDGs present for long term corporate value creation, economic growth and social welfare? Are investors shifting capital to companies that are tangibly contributing towards the SDGs? What regulatory measures are underway to ensure the SDGs are achieved within an appropriate time-frame? To what extent are companies embracing requirements set out under the Taskforce on Climate Related Disclosures?

15:50 - 16:05
Closing Remarks