Activist funds ramp up pressure on listed firms ahead of March shareholder meetings

Brokerages' buildings in Seoul's financial district of Yeouido / Yonhap

By Lee Kyung-min

• Published Feb 15, 2026 2:54 PM KST
• Updated Feb 18, 2026 3:41 PM KST

A growing number of activist funds are seeking to launch a coordinated campaign to strengthen shareholder returns in the areas of boardroom decision-making, capital allocation policies and executive pay structures, market watchers said Sunday.

The collective move comes ahead of next month's upcoming shareholder meetings where corporate governance is set to emerge as a major minority shareholder rights issue.

Together with the ongoing revision to the Commercial Act — characterized by strengthened corporate governance and enhanced shareholder rights — many say shareholder activism will take center stage in the coming weeks, led by not only domestic activist funds but also foreign hedge funds.

According to the financial investment industry, two domestic funds — Align Partners Capital Management and Truston Asset Management — and the U.K.-based Palliser Capital are calling for greater shareholder returns.

Align Partners has pressed for what it calls “normalization” of shareholder returns at DB Insurance, a non-life insurer, and APlus Asset Advisor, a non-life and life insurance service platform, including proposals to appoint audit committee members.

The fund also submitted shareholder proposals to Dentium, a dental implant medical device manufacturer; Gabia, an IT infrastructure and cloud services firm; and SoluM, an electronic components and smart solutions manufacturer; calling for stronger governance structures, independent outside directors and reforms to executive compensation systems.

Align Partners said that in those three companies, controlling shareholders directly participate in management, while their boards’ oversight functions are largely undermined.

An official representing Align Partners said the firm sees it as a structural weakness.

This, according to firm, contributes to sustained undervaluation of corporate value, leading to weakened minority shareholder rights.

"The fund has sent private letters and arranged meetings to express concern, but saw no meaningful progress. This is why it launched the public campaign ahead of the annual shareholder meetings," the official said.

Similarly, Truston Asset Management has targeted KCC Corp., urging it to liquidate its roughly 4.9 trillion won ($3.3 billion) stake in Samsung C&T Corp. and use the proceeds for share buybacks and cancellations — a move that would significantly alter the company’s balance sheet and capital structure.

Apart from increasing dividends and buybacks, executive incentives are being targeted.

Life Asset Management, which owns around 4 percent of BNK Financial Group shares, has proposed introducing “restricted stock units” for directors at next month’s meeting.

The units are a form of compensation where a company promises to give shares to employees or executives in the future, usually after a performance target is met.

They are used to align management’s interests with shareholders by tying pay to the company’s long-term stock performance.

In a Feb. 10 shareholder proposal, Palliser Capital said LG Chem is severely undervalued, calling for enhanced shareholder return measures and improved communication with investors.

Palliser also called for LG Chem to sell roughly 10 percent of its stake in LG Energy Solution.

Palliser is known to hold more than 1 percent of LG Chem shares.

“The March shareholder meetings could mark a major shift in how Korean companies are governed, setting a new standard for board independence, capital management and shareholder relations,” an industry official said.