The focus of global ESG is shifting rapidly toward corporate governance, as shareholder proposals in the United States increasingly target board structure and capital policy. In South Korea, a series of Commercial Act revisions and mandatory treasury share cancellations are strengthening governance rules and raising pressure on major groups. Some companies are moving early to cancel shares, while others are adding exception clauses or reshaping board structures, prompting warnings of longer-term governance risk premiums.

The Korea Exchange will sharply raise the bar for screening duplicate listings of subsidiaries. It plans to apply stricter standards centered on three pillars: business independence, management independence and investor protection, while giving parent-company boards a duty of loyalty to shareholders. The exchange will in principle ban duplicate listings and apply strict tests only in exceptional cases. It will also require parent firms to assess impacts on minority shareholders and disclose proportionate protection measures and communication efforts.