Korea Moves Forward on Governance Reform: Mandatory Cumulative Voting and Expanded Audit Committee Elections Passed

ACGA reports that Korea's National Assembly passed landmark amendments mandating cumulative voting for large listed companies (assets over KRW 2 trillion) and expanding the number of separately elected audit committee members from one to two, with both measures taking effect in September 2026. The reforms are designed to strengthen minority shareholder rights, reduce controlling-shareholder dominance over board composition, and enhance audit committee independence as structural board accountability mechanisms. For SEA mid-market boards benchmarking governance execution standards, Korea's experience illustrates how regulatory architecture—not just policy—determines whether board accountability frameworks produce real operational follow-through.