Corporate governance in Korea at the millennium: Enhancing international competitiveness--final report and legal reform recommendations to the Ministry of Justice of the Republic of Korea 15 May 2000

The core of this article is the May 2000 Report to the Ministry of Justice of the Republic of Korea. South Korea's corporate governance system is reviewed and legal reforms are recommended to improve Korean corporate governance and protect against a repeat of Korea's governance-related financial crisis of 1997-1998. The principal recommendations include enhancing the role of public company boards of directors, strengthening independent director and non-interested shareholder review of related party transactions, and requiring cumulative voting and preemptive rights for public companies. A discussion is presented of the ongoing transition in Korean corporate governance, and the political and economic forces behind that transition.