Korea's Corporate Governance Reforms Hit One-Year Mark Amid Leverage ETF Market Concerns

According to Asia Economy, one year after South Korea implemented amendments to its Commercial Act aimed at strengthening shareholder rights and improving corporate governance, officials highlighted both progress and ongoing challenges. The legal reforms, which took effect around July 2025, expanded fiduciary duties for board directors and introduced governance improvements to help address the 'Korea Discount'—the valuation gap between Korean companies and global peers. Officials noted that leverage ETFs have begun disrupting market momentum, underscoring the importance of maintaining predictable market conditions as reforms take root.
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