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Foreign investors' participation in Korea's capital market remains widely challenged, constrained by inconsistent meeting logistics, minimal English interpretation and incomplete or limited company disclosures — a recipe for persistent disadvantages in making informed voting decisions, a global nonprofit corporate governance advocacy said Sunday.

Key barriers include the country's 14-day notice period, compressed voting windows and the overwhelming clustering of annual general shareholder meetings in late March, according to Stephanie Lin, research head for Korea and Singapore at the Asian Corporate Governance Association (ACGA).

Further exacerbating the status quo are Korea's stalled reform efforts, including optional electronic voting and a revision of dividend record dates.

Also impeding the processes is a lack of transparency in director remuneration and detailed voting results.

Founded in 1999, ACGA is an independent nonprofit organization dedicated to working with investors, companies and regulators in the implementation of effective corporate governance practices throughout Asia.

It is funded by a network of sponsors and member companies, including leading pension and investment funds, financial institutions, listed companies, accounting firms and educational institutions. It is incorporated under the laws of Hong Kong and is managed by a secretariat based there.

"Key issues remain persistent, despite almost two decades of advocacy for reform," Lin said in the report.

Procedural hurdles, including power of attorney requirements, language barriers and coordination among various agencies in different time zones, further complicate the process for foreign shareholders. This is what Lin says makes effective participation a logistical challenge.

In Lin's view, regulatory changes and stakeholder engagement are essential reforms.

"It will require participation of key bodies such as the Ministry of Justice, the Korea Exchange (KRX) and the Financial Services Commission (FSC), and active collaboration with stakeholders like the Korea Securities Depository (KSD), local custodians, and proxy advisory firms. These are crucial to driving improvement," she said.

The recommendation followed frustration experienced by a 2024 ACGA delegation of members to Seoul in March.

"Planning for the meetings was complicated by Korea's 14-day notice rule, with many shareholder meeting dates still unconfirmed as of early March, making scheduling difficult," Lin said.

Delegation members also faced inconsistent communication about meeting logistics, with their participation hindered further by limited English translation services.

"While some companies addressed these issues once investor interest became evident, the overall experience highlighted the slow pace of reform in Korea," she said.

In a 2006 report on proxy voting practices, the nonprofit organization ranked Korea eighth out of 10 Asian markets.

Korea scored particularly low for the clustered shareholder meetings and the publication of vote results, and for meeting notice periods and time allowed to vote.

"Korea also ranked poorly for the low availability of voting information and translated materials. The experience of the March 2024 delegation suggests little progress has been made since," it said.