[COVER STORY] From Tiger to Align, shareholder activism takes root in Korea

In 1999, a U.S. fund began challenging SK Telecom, marking the start of shareholder activism in Korea. At the time, the country was still recovering from the Asian financial crisis and its capital markets were only beginning to welcome foreign investors. Tiger Management acquired a 6.6 percent stake in the largest wireless carrier in the nation and pushed for reforms, such as enhancing external oversight and increasing the company's decision-making authority.

The Chey family, a prominent chaebol dynasty and the controlling family behind SK Group, spent approximately 2 trillion won to safeguard their control over the conglomerate. However, just months after the initial investment, Tiger had already earned around 630 billion won ($463.6 million) by selling its stake. This success only fueled doubts among many companies that foreign investors were profiting at Korea's expense, and this skepticism continued to linger.

In 2003, Sovereign took on SK Corp., while in 2006, Carl Icahn challenged KT&G. Despite the ongoing shareholder activism, the apprehension towards foreign investors remained, highlighting the evolving dynamics of corporate governance in Korea.