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Voting Guidelines

We exercise the voting rights on holding stocks in a manner intended to maximize the long-term value of our investments. In order to make prudent votes, we are committed to scrutinizing companies performance as well as advocating their effort to enhance long term corporate financial performance.

Of course, we comply with the voting principles and procedures which are formulated by approval of the Fund Management Committee under the Guidelines on Responsible Investment & Governance of National Pension Fund. As a result, at the National Pension Service Investment Management, we determine the exercise of voting rights, except for a particular matter which is submitted to Special Committee on Responsible Investment & Governance due to a controversial issue.

Voting Principles

The voting on stocks held by the National Pension Fund is intended to amplify and maximize the fund assets; and the voting right shall be exercised in compliance with the following principles as intended.

  • We duly vote in good faith for the best interest of those currently and previously insured to the National Pension Plan and those entitled to pension benefits.
  • We vote in a direction toward enhancing shareholder values in the long term.
  • We vote with consideration of environmental, social and governance factors in investment to stabilize and heighten investment return in the long term.

Voting Scope

We exercise the voting right to listed stocks held by the National Pension Fund under its name, unless our shareholding ratio is less than 1 percent of the total shares issued by a company; and each holding is less than 0.5 percent of the total domestic equities and less than 0.5 percent for the total global equities.

The voting right is exercised through assessment and approval by the Investment Committee established by the National Pension Service Investment Management (NPSIM). Having said that, the Special Committee on Responsible Investment & Governance (RI&G Special Committee) may step in to decide regarding the voting right, which would be exercised accordingly by the NPSIM, when the NPSIM requests for the decision to be made by the RI&G Special Committee because of its challenge in making proper decisions; or more than three members of the branch for shareholder activism at the RI&G Special Committee request for the decision to be made by the RI&G Special Committee because of the agenda’s potentially substantial impact on the long-term shareholder values.