POSCO Center, located at 440 Teheran-ro, Gangnam-gu, Seoul
SEOUL, June 17 (Korea Bizwire) — With South Korea set to require all KOSPI-listed firms to submit corporate governance reports starting in 2026, POSCO Holdings has emerged as the top performer in governance compliance over the past five years, according to a comprehensive industry analysis released Tuesday.
The study by Leaders Index, which reviewed 2024 corporate governance reports from 501 non-financial, KOSPI-listed firms with assets exceeding 500 billion won, found that companies on average complied with just 54.4% of key governance indicators.
These indicators span 15 principles across three categories: shareholder rights, board of directors, and audit institutions.
POSCO Holdings achieved full compliance with all 15 core indicators in three of the last five years (excluding 2021 and 2023), making it the leading company in terms of adherence. KT&G followed closely, having reached 100% compliance in both 2024 and 2025 after scoring above 86% in prior years.
Six other firms—including LG Innotek, HD Hyundai Construction Equipment, Kakao, Hyundai Heavy Industries, LG HelloVision, and HD Hyundai Marine Solution—met 14 of the 15 indicators.
Notably, 28 companies—including Samsung Electronics, LG, SK Telecom, and Naver—achieved compliance with 13 indicators, a significant jump from just nine companies the previous year.
The most improved company was pharmaceutical firm IlDong, which raised its compliance rate from just 13.3% in 2024 to 73.3% in 2025, going from 2 to 11 fulfilled indicators.
Still, compliance remains uneven. More than 40% of the reviewed companies (210 in total) met fewer than half of the indicators. Among the laggards, firms like Samyang Holdings, Hite Jinro Holdings, LS Networks, and I-Market Korea failed to meet even 30% of the benchmarks.
By category, audit-related indicators had the highest compliance rate at 74.8%, while shareholder-related items averaged 55.7%. Board-related principles were the weakest area, with an average compliance rate of just 39.9%.
One indicator in particular—the cumulative voting system, designed to amplify the voices of minority shareholders—was adopted by only 3% of the firms surveyed.
The report highlights the urgent need for stronger governance practices ahead of the upcoming mandatory disclosure requirements. As regulatory scrutiny intensifies, companies failing to improve transparency and shareholder engagement may face growing pressure from investors and the public.
Ashley Song (ashley@koreabizwire.com)
