Apps give minority shareholders more influence, raising concerns for companies - South Korea

According to a survey of 300 listed companies conducted by the Korea Chamber of Commerce and Industry, 40% of the companies received requests from shareholders regarding their participation in management in the past year.
90.9% of the companies that have responded to these requests have said that they are from minority shareholders or minority shareholder groups. This is due to the emergence of platforms for minority shareholders such as "Act" and "B-Side" in South Korea.
Recently, in the case of biomaterials company ARMY Cozen, a group of minority shareholders, including Shin, the founder and largest shareholder,
There are also cases where this led to the dismissal of Chairman Yeongcheol. There are voices of caution against minority shareholders both inside and outside the financial world. The demands of minority shareholders are focused on short-term profits such as share buybacks and sales.
The buying and selling of these stocks will affect the mid- to long-term competitiveness of companies, including by hindering investment in research and development (R&D).
The scope of responsibility is expected to be expanded from companies to shareholders. Kang Seok-ku, head of the research department at the Korea Chamber of Commerce and Industry, said, "Companies need to actively engage in dialogue with ordinary shareholders who make reasonable demands.
"Anything that is positive could undermine the competitiveness of companies, so a careful approach is necessary."