Addressing Information Inequality and Enhancing Minority Shareholder Rights: Corporate Governance Challenges and Sustainable Development in Korea's Capital Market

In Korea, as of December 2022, the Korean stock market has 826 KOSPI ($1.397 trillion USD), 1,611 KOSDAQ ($249 billion USD) with a market capitalization of $1,646 trillion dollar. Although it is the 13th largest stock market in the world, Korea's corporate governance system has a deformed structure of severe information imbalance. Korea is an attractive market for foreign investors, but large Korean companies have unusual corporate governance due to strange capital management and hereditary management. This is a very negative factor for foreign investors. In addition, Korea's corporate structure has created a cruel governance system for minority shareholders. Minority shareholders have been unaware of the extinction and neglect of their rights. In addition, minority shareholders are either ignorant of the basis and method of exercising their rights, or they are afraid of the movement of vast forces in the stock market, so they are stuck in a lethargy of resistance to the antirational and malicious behavior of the market structure. This study conducts the following subjects. Firstly, the specific research method is to point out the problems in corporate governance history and system in Korea and also introduce them with a focus on actual cases. Second, the research will look at Korea's Commercial Act and Financial investment Services and Capital Markets Act (FSCMA) on the rights and protection regime of minority Shareholders. Third, the research will propose ways to achieve sustainable development in the international economic market. The scope of this thesis is as follows. First, this thesis surveys the literature to examine the characteristics of corporate governance in Korea's economic growth process. Second, it examines the proportion and duration of minority shareholder rights as stipulated by the Commercial. Third, it investigates the relevant provisions of the Commercial Act and the FSCMA to examine the monitoring and supervisory powers of independent directors and auditors and points out the problems related to them. As a result, this thesis will propose strengthening the rights of minority shareholders, who are the weakest under capitalism, to address the serious information inequality and rights imbalance in the market economy, thereby achieving the sustainable development of international capital markets.