The Korean government has made various efforts to improve the corporate governance after the economic crisis; the requirement of outside director, protection of the rights of the small shareholders, the introduction of the international standards into...
The Korean government has made various efforts to improve the corporate governance after the economic crisis; the requirement of outside director, protection of the rights of the small shareholders, the introduction of the international standards into corporate accounting system. However the performance of these reforms is not satisfactory; most outside directors are not independent from their owner-managers; the case that small shareholders initiate lawsuits is very rare; the transparency is not greatly improved. The internal monitoring system should be firmly established; strengthening the minority shareholder`s rights and introducing the class action suit. In order to set up a more independent board structure, it is necessary for the main bank and employees to have the rights to recommend outside directors as a shareholder. The transparency of management should also be improved through independent and reliable auditing.