Board of Directors Fear Lawsuits... One Out of Five Listed Companies Delay Investment Decisions

A survey of 300 listed companies by the Korean Chamber of Commerce found that 84.3% reported changes in board operations post-Company Law amendment. Expanded fiduciary duties to directors and shareholders have intensified legal reviews, leading 21.7% of firms to delay or cancel major decisions. Legal risks and compliance costs have caused significant delays in investments, with 30.8% of delayed decisions related to new business ventures and M&A. Over half of companies cited heightened concerns about shareholder lawsuits, while 47.2% of firms meeting independence requirements for independent directors have already fulfilled the criteria.