[COVER STORY] Japan's shareholder activism boom: Benchmark for Korea, or cautionary tale?
Korea and Japan have long shared a corporate governance problem: companies in which insiders, such as founding families, wield outsized influence often at the expense of minority shareholders. Both governments have sought to shift that balance by strengthening shareholder rights and pressing companies to improve governance and capital efficiency. Japan moved first, introducing a stewardship code…
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In Korea and Japan, a corporate governance challenge persists: companies where insiders, like families that founded them, hold significant sway, often to the detriment of minority shareholders. Both nations have endeavored to alter this dynamic by bolstering shareholder rights and compelling organizations to enhance governance and financial efficiency.
Japan was the pioneer, enacting a stewardship code in 2014, followed by a corporate governance code the next year. The Tokyo Stock Exchange's 2023 directive urging management to consider the cost of capital and stock price provided activists with a more defined framework for engagement. This conducive policy landscape has contributed to Japan's emergence as one of the world's most active markets for shareholder activism.
The emphasis on financial efficiency has also bolstered the growth of Japanese equities. Japan was responsible for 56% of Asia's 205 activist campaigns in 2025 and 32% of the 100 campaigns recorded in the first quarter of 2026, as reported by Diligent Market Intelligence. Activists managed to secure 37 board seats at Japanese companies in 2025, a sharp increase from previous years.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
