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Korea’s corporate governance low among emerging nations

2 October 2016 No Comment

Korea’s corporate governance and investor protection are not at high levels among major emerging economies, particularly lagging behind those of Malaysia in all aspects, according a report by the International Monetary Fund.

In its Global Financial Stability report released Friday, the IMF unveiled indexes on the levels of major emerging economies in six categories, which also included small shareholder protection and corporate audits.

According to the report, Korea’s investor protection index stood at 6.7 as of 2013, the same as Chile and Turkey and higher than the 6.0 recorded by Poland and Bulgaria but lower than Malaysia (8.7), South Africa (8.0), Colombia (8.0), Thailand (7.7) and Peru (7.0).

In small shareholder protection, as measured in 2014, Korea’s index remained at 3.4, the lowest among the 20 countries surveyed. South Africa topped this category with 6.1, followed by Malaysia (5.3) and Thailand (4.9).

In the public notice index, a yardstick for transparency, Korea’s index was 7.0, similar to Argentina, Poland and India.

On the other hand, five countries _ China, Malaysia, Bulgaria, Indonesia and Thailand _ recorded 10.0 on the index. In the auditing and reporting index, too, the nation’s index remained at 4.4, 16th among the 20.

The higher this index is, the higher the level of explanations provided for each item, the IMF report said.


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