Korea Securities Depository (KSD) said on the 28th that the electronic voting system (K-VOTE) was used more than ever at this year's regular shareholders meetings of listed companies. It noted that it achieved record performance across all indicators, including the number of companies using electronic voting, the participation rate, and the number of shares voted.
At this year's regular shareholders meetings, a total of 994 companies used K-VOTE, and the number of shares cast through electronic voting came to 7.54 billion. The participation rate was 13.6%.
The number of companies using K-VOTE at this year's regular shareholders meetings increased by 73 from the previous year (921). Of these, 952 were listed companies, including 423 on the main bourse, 520 on KOSDAQ, and 9 on KONEX.
In particular, among the 211 listed companies with assets of 2 trillion won or more that are required to hold electronic shareholders meetings next year, 149 used K-VOTE. This figure amounts to 70.6%.
The K-VOTE electronic voting participation rate at this year's regular shareholders meetings was 13.6%. That was up 1.2 percentage points from the previous year (12.4%). The number of shares voted was 7.54 billion, up 1.07 billion from the previous year (6.48 billion).
A KSD official said, "Both the K-VOTE electronic voting participation rate and the number of shares voted hit a record high, and in particular the participation rate has steadily risen over the past five years."
By shareholder type, institutional investors such as pension funds, asset managers, and insurers (45.1%) contributed the most. They were followed by corporations (32.8%) and individuals (19.6%). In the case of pension funds, seven institutions including the National Pension Service took part and cast 2.06 billion shares, consistently maintaining a high level of participation.
However, as participation rates among individuals and other corporate shareholders such as asset managers and insurers have risen recently, the relative contribution of pension funds to the overall participation rate has decreased.
KSD analyzed this as the effect of amendments to the Commercial Act aimed at improving corporate governance and strengthening shareholder rights. It said this is the result of heightened demands for transparency and accountable management in corporate decision-making.
It also assessed that K-VOTE briefings for listed companies held since late last year, promotional activities targeting institutional investors, and systematic support from a dedicated electronic voting support task force during the peak period of regular shareholders meetings contributed significantly.
In particular, with the electronic shareholders meeting system set to take effect in 2027, voting by electronic means is expected to become even more active, and accordingly the scale of K-VOTE use is projected to continue expanding.
Meanwhile, KSD plans to organically integrate K-VOTE with the electronic shareholders meeting platform currently being built and develop it into a comprehensive electronic voting support platform that supports the entire proxy voting process.