{"id":3291,"date":"2019-12-13T09:48:56","date_gmt":"2019-12-13T17:48:56","guid":{"rendered":"https:\/\/dev.darsky.com\/dalton\/?p=3291"},"modified":"2019-12-13T09:48:57","modified_gmt":"2019-12-13T17:48:57","slug":"activist-insight-dalton-pushes-for-changes-at-korean-corporations","status":"publish","type":"post","link":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/","title":{"rendered":"Activist Insight: Dalton pushes for changes at Korean corporations"},"content":{"rendered":"\n

California-based hedge fund Dalton Investments has called on Korean lawmakers to keep corporate governance practices in check, arguing this would boost both investor confidence and the value of the nation\u2019s stock market.<\/p>\n\n\n\n

Ten\nmonths after issuing a similar letter to the Korean government, Dalton returned\nwith proposals on preventing founding families from exerting undue control at\nlisted companies and advanced requirements regarding share buybacks and\nenhanced dealmaking.<\/p>\n\n\n\n

Korea\u2019s\nstock market has so far failed to attract sufficient funds to match its strong\neconomy and prospects and this is because investors often stay clear of local\ncompanies, which tend to prioritize the interests of their controlling\nshareholders, Dalton senior analyst James Lim argued. One of the solutions\nprovided by Dalton is to force companies to task a director with monitoring\nwhether minority shareholders\u2019 interests are being respected. <\/p>\n\n\n\n

Another\ncause for the perennial trading discount of Korean shares is the \u201cextremely\nlow\u201d capital firms return to shareholders, Lim added in the letter seen by\nBloomberg.<\/p>\n\n\n\n

\u201cTo\npromote the listed equity markets and public equity funds, the government and\nthe National Assembly must demonstrate their strong willingness to normalize\nthe Korean stock market and fully explain the rationale so that the market can\nbuild up trust in the Korean public stock market,\u201d Dalton said.<\/p>\n\n\n\n

Dalton\u2019s\narguments echo previous calls from Scion Asset Management\u2019s Michael Burry, who\nearlier this year blamed certain management behaviors of Korean corporations\nfor the depressed sentiment among international investors toward local stocks.\nRenowned activist investor Paul Singer, the founder of Elliott Management, also\nvoiced his concerns on corporate accountability several times over the past\nyears.<\/p>\n\n\n\n

The\nTuesday letter follows a February one in which Dalton decried the local stock\nmarket\u2019s underperformance and undervaluation, pointing to the low capital\nefficiency of Korean companies as the primary culprit. <\/p>\n\n\n\n

At\nthe time, Dalton urged large pension funds and lawmakers to demand companies\nincrease shareholder payouts and adjust their capital allocation and planning\nto maximize long-term \u201ceconomic value added\u201d for all shareholders, among other\nproposals. The fund reckoned that the nation\u2019s primary stock index, KOSPI,\ncould rise by 80% it these measures are achieved. Dalton\u2019s letter was supported\nby KCGI, the activist fund involved in a push for better governance at Korean\nAir Lines parent, Hanjin Kal.<\/p>\n\n\n\n

An\nin-depth report on activism in South Korea can be read in the April edition of\nActivist Insight Monthly, which subscribers can read at this\nlink [activistinsight.com]<\/a>.<\/p>\n\n\n\n

South Korean lawmakers are working to devise guidelines on activism by the nation’s largest state pension fund. They aim to give the National Pension Service (NPS), which owns 7% of the Korean stock market, more freedom to pursue activist campaigns at companies with shady corporate governance practices. However, the changes may take longer than anticipated as business leaders have recently requested extended talks on the guidelines, worried that NPS would gain too much power over local companies.<\/p>\n\n\n\n

This article first appeared in Activist Insight on December 6, 2019.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

California-based hedge fund Dalton Investments has called on Korean lawmakers to keep corporate governance practices in check, arguing this would boost both investor confidence and the value of the nation\u2019s stock market. Ten months after issuing a similar letter to \u2026
read more ><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[16],"tags":[],"class_list":["post-3291","post","type-post","status-publish","format-standard","hentry","category-dalton-in-the-news","wpautop"],"yoast_head":"\nActivist Insight: Dalton pushes for changes at Korean corporations - Dalton Investments<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Activist Insight: Dalton pushes for changes at Korean corporations - Dalton Investments\" \/>\n<meta property=\"og:description\" content=\"California-based hedge fund Dalton Investments has called on Korean lawmakers to keep corporate governance practices in check, arguing this would boost both investor confidence and the value of the nation\u2019s stock market. Ten months after issuing a similar letter to \u2026read more >\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/\" \/>\n<meta property=\"og:site_name\" content=\"Dalton Investments\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-13T17:48:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-13T17:48:57+00:00\" \/>\n<meta name=\"author\" content=\"Michael Caroff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael Caroff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/\",\"url\":\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/\",\"name\":\"Activist Insight: Dalton pushes for changes at Korean corporations - Dalton Investments\",\"isPartOf\":{\"@id\":\"https:\/\/dev.darsky.com\/dalton\/#website\"},\"datePublished\":\"2019-12-13T17:48:56+00:00\",\"dateModified\":\"2019-12-13T17:48:57+00:00\",\"author\":{\"@id\":\"https:\/\/dev.darsky.com\/dalton\/#\/schema\/person\/7cd5842f2361b709d526b3ca097af100\"},\"breadcrumb\":{\"@id\":\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/dev.darsky.com\/dalton\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Activist Insight: Dalton pushes for changes at Korean corporations\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/dev.darsky.com\/dalton\/#website\",\"url\":\"https:\/\/dev.darsky.com\/dalton\/\",\"name\":\"Dalton Investments\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/dev.darsky.com\/dalton\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/dev.darsky.com\/dalton\/#\/schema\/person\/7cd5842f2361b709d526b3ca097af100\",\"name\":\"Michael Caroff\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/dev.darsky.com\/dalton\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d091b13cfcd164d9ad3bbc7c6bf347b6345eaf12567daee32fa9f19cca173b86?s=96&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d091b13cfcd164d9ad3bbc7c6bf347b6345eaf12567daee32fa9f19cca173b86?s=96&r=g\",\"caption\":\"Michael Caroff\"},\"sameAs\":[\"http:\/\/caroff.com\"],\"url\":\"https:\/\/dev.darsky.com\/dalton\/author\/caroff\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Activist Insight: Dalton pushes for changes at Korean corporations - Dalton Investments","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/","og_locale":"en_US","og_type":"article","og_title":"Activist Insight: Dalton pushes for changes at Korean corporations - Dalton Investments","og_description":"California-based hedge fund Dalton Investments has called on Korean lawmakers to keep corporate governance practices in check, arguing this would boost both investor confidence and the value of the nation\u2019s stock market. Ten months after issuing a similar letter to \u2026read more >","og_url":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/","og_site_name":"Dalton Investments","article_published_time":"2019-12-13T17:48:56+00:00","article_modified_time":"2019-12-13T17:48:57+00:00","author":"Michael Caroff","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Michael Caroff","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/","url":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/","name":"Activist Insight: Dalton pushes for changes at Korean corporations - Dalton Investments","isPartOf":{"@id":"https:\/\/dev.darsky.com\/dalton\/#website"},"datePublished":"2019-12-13T17:48:56+00:00","dateModified":"2019-12-13T17:48:57+00:00","author":{"@id":"https:\/\/dev.darsky.com\/dalton\/#\/schema\/person\/7cd5842f2361b709d526b3ca097af100"},"breadcrumb":{"@id":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/dev.darsky.com\/dalton\/activist-insight-dalton-pushes-for-changes-at-korean-corporations\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/dev.darsky.com\/dalton\/"},{"@type":"ListItem","position":2,"name":"Activist Insight: Dalton pushes for changes at Korean corporations"}]},{"@type":"WebSite","@id":"https:\/\/dev.darsky.com\/dalton\/#website","url":"https:\/\/dev.darsky.com\/dalton\/","name":"Dalton Investments","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/dev.darsky.com\/dalton\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/dev.darsky.com\/dalton\/#\/schema\/person\/7cd5842f2361b709d526b3ca097af100","name":"Michael Caroff","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/dev.darsky.com\/dalton\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d091b13cfcd164d9ad3bbc7c6bf347b6345eaf12567daee32fa9f19cca173b86?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d091b13cfcd164d9ad3bbc7c6bf347b6345eaf12567daee32fa9f19cca173b86?s=96&r=g","caption":"Michael Caroff"},"sameAs":["http:\/\/caroff.com"],"url":"https:\/\/dev.darsky.com\/dalton\/author\/caroff\/"}]}},"_links":{"self":[{"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/posts\/3291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/comments?post=3291"}],"version-history":[{"count":0,"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/posts\/3291\/revisions"}],"wp:attachment":[{"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/media?parent=3291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/categories?post=3291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.darsky.com\/dalton\/wp-json\/wp\/v2\/tags?post=3291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}