We follow the Korea Stewardship Code which is consistent
Principles on the Stewardship Responsibilities of Institutional Investors
Sun Hee Cho (Senior Director) : firstname.lastname@example.org, Tel : 02-568-8475
Dong Im Shin (Team Manager): email@example.com, Tel : 02-568-8510
Company K Partners supports the Code by abiding existing internal guideline, which is in accord with principles on stewardship responsibilities, to faithfully implement the responsibilities on behalf of our investors benefit.
→ We treat all of our investors uniformly.
→ We put top priority on the benefit of our investors.
→ We follow the internal guideline and regulation on all of our investment processes from the evaluation to exit on behalf of our investors benefit.
Our investment professionals, compliance officer and risk management team cooperate constantly to avoid potential issues from conflicts of interest.
[Princple 2] Institutional investors should formulate and publicly disclose an effective and clear policy as to how to resolve actual or potential problems arising from conflicts of interest in the course of their stewardship activities.
- Company K Partners supports the Code by abiding existing internal principles and guideline to manage conflicts of interest which include “Investor-first principle”, Independent decision making principle”, “Account classification management principle” and other principles.
- Our compliance officer and risk management team have formulated an effective and clear internal policy on guideline and procedure to prevent and resolve actual or potential issues from conflicts of interest.
→ Issues regarding distribution of investment funds
→ Issues regarding exit process
→ Other future issues with the management team of investee companies.
[Princple 3] Institutional investors should regularly monitor investee companies in order to enhance investee companies’ mid- to long-term value and thereby protect and raise their investment value.
- Company K Partners supports the investee companies to enhance their mid- to long-term value by providing the access to a rich pool of experts in innovation, market intelligence, financial / accounting expertise and policy / regulatory affairs, to the marketing, brand-building platform, IPO & M&A support and global expansion roadmap.
- We monitor the investee companies periodically as following: monitor by following internal guideline and compliance, which includes regular / frequent inspections, provide human resource, if necessary, to improve their corporate governance and compliance system and analyze the structure and timing for the exit.
[Princple 4] While institutional investors should aim to form a consensus with investee companies, where necessary, they should formulate internal guidelines on the timeline, procedures, and methods for stewardship activities.
- Company K Partners put emphasis on integrity and morality of investee companies’ management team from the kick-off to build long-term partnership and consensus.
- We follow internal guidelines and principles to avoid any potential moral hazard related issue of investee companies in advance.
→ Prior consent on major decision-making
→ Potential legal action against the management team for violation of laws and regulations
→ Other potential principles that could prevent moral hazard issues of investee companies
[Princple 5] Institutional investors should formulate and publicly disclose a voting policy that includes guidelines, procedures, and detailed standards for exercising votes in a faithful manner, and publicly disclose voting records and the reasons for each vote so as to allow the verification of the appropriateness of their voting activities.
- Company K Partners follows internal guidelines and procedures for all applicable voting activities regarding our portfolio companies and we put top priority on institutional investors and funds benefit.
- We go through extensive evaluation and due diligence before the voting activities to derive optimal outcome.
- We report to our investors on voting activities by follow internal procedures where investment professional propose future agenda and all of our investment professionals, compliance officer and risk management team go through thorough evaluation to reach best outcome.
[Princple 6] Institutional investors should regularly report their voting and stewardship activities to their clients or beneficiaries.
- Company K Partners provides our clients with periodic updates on portfolio companies through periodic general meetings and quarterly reports.
- We hold extraordinary general meetings when necessary to gain approval from our investors to determine urgent and critical matters.
[Princple 7] Institutional investors should have the capabilities and expertise required to implement stewardship responsibilities in an active and effective manner.
- Company K Partners actively supports the investment professionals, who possess exceptional expertise and insights in various industries, in developing in-depth knowledge and insights to enhance our capabilities to implement stewardship responsibilities in an active and effective manner.
→ Holds periodic internal seminars and workshops
→ Attends external training programs
→ Attends domestic / overseas conferences in growth industries
→ Cooperation with external legal / accounting firms