South Korea’s National Pension Service (NPS), the country’s largest institutional investor who has vowed more proactive role under stewardship code adoption, disclosed that it will oppose one or more agenda proposals by 11 listed Korean companies to be put to a vote in upcoming annual shareholders’ meetings.

The world’s third largest pension fund with 635 trillion won ($560.5 billion) assets under management on Tuesday posted its position on shareholders’ meetings of 23 companies in which it has more than 10 percent stake or 1 percent or more in stock funds.

The disclosure showed that the fund is opposed to one or more agendas of 11 companies. The veto mostly concerned appointments of inside and outside board directors and auditors. The 11 companies include LG Hausys, LG International, Hanmi Pharmaceutical, Hyundai Glovis, Hyundai Engineering & Construction, Hyundai Wia, Shinsegae, Nongshim and Poongsan.

The NPS’s move would influence decisions by other institutional players that manage assets on behalf of the state fund. The NPS entrusts 57 trillion won, nearly 50 percent of its assets with private fund operators.

Nearly 100 publicly traded companies face opinion disclosure by the NPS. The NPS owned 10 percent or more in 79 companies as of January and held 1 percent or more in stock funds investing in 21 companies as of 2017.

Last year, a total of 10 names failed to win a vote from the national fund on their balance sheet due to small dividends, including Namyang Dairy Products and Hyundai Green Food, which were blacklisted by the fund due to low dividends.

By Yoo Joon-ho and Lee Ha-yeon

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