South Korea Justice Minister pledges governance reform

Justice Minister Jung Sung-ho stated on Thursday that South Korea will maintain transparent regulations for international investors, emphasizing that the government of President Lee Jae Myung remains committed to corporate governance reform despite pushback from the private sector. Since the administration took office last year, the ruling party has implemented various stock market reforms designed to mitigate the "Korea Discount," a term referring to the lower valuations of domestic firms compared to global peers due to the opaque structures of the country's dominant, family-owned conglomerates.

Jung highlighted recent amendments to commercial law, which include enhanced board accountability, mandatory treasury share cancellation, and stricter requirements for independent directors. These changes align with demands investors have voiced for nearly two decades.