Activist Funds Make Their Mark in Korea

Recent amendments to commercial laws in Korea have opened the door for foreign activist funds, leading to a significant shift in corporate governance. Funds like Dalton Investments and Palisade Capital are at the forefront, leveraging these changes to influence domestic companies.

Strategic Moves by Leading Funds

Dalton Investments has not only established a branch in Korea but also secured a position for Im Sung-yoon as a non-executive director at Korea Kolmar Holdings. With a stake increase to 5.69%, their intent is clear: management participation.

Palisade Capital, founded by former Elliott executives, has been in talks with SK Square, highlighting the company's efforts in value-up disclosures and shareholder returns.

New Entrants and Future Prospects

Blue Orca Capital's entry into the Korean market, with investments in DN Automotive, signals a growing interest in undervalued Korean companies. The anticipated IPO of DN Solutions could offer significant short-term gains.

These developments reflect Korea's evolving economic policies and its increasing openness to foreign capital, setting the stage for a new era in corporate activism.