Broadridge & KSD plan proxy voting overhaul in Korea

Broadridge and Korea Securities Depository have signed a memorandum of understanding on Korea's proxy-voting infrastructure, focused on international investors holding Korean equities.

They plan to collaborate on modernising the system, with an emphasis on digitising and automating the end-to-end proxy-voting process.

The agreement supports Korea Securities Depository's broader market objectives of improving efficiency, transparency and international alignment in the Korean capital market. It also leaves open the possibility of future work in other proxy-related areas.

Under the memorandum, the parties aim to help create a market operating model that improves transparency, accuracy and governance standards in line with global practices. The effort is also intended to strengthen Korea's position as a capital-markets jurisdiction.

Korea Securities Depository is the country's central securities depository and a core part of its market infrastructure. Its responsibilities include securities settlement, custody, electronic registration, securities lending, collateral management and fund services, as well as cross-border securities services linking the Korean market with overseas investors and institutions.

For Broadridge, the agreement adds to its work in market infrastructure and investor communications across financial services. It says it processes more than eight billion communications annually and supports average daily trading of more than USD $18 trillion in tokenised and traditional securities globally.

Proxy process

Proxy voting is a key part of shareholder participation for investors who hold shares in overseas markets, allowing them to vote on corporate resolutions without attending meetings in person. In cross-border markets, the process often involves multiple intermediaries, which can create delays, operational complexity and visibility issues for investors and issuers.

The proposed changes in Korea are aimed specifically at international investors in Korean equities, for whom smoother proxy processes can matter both operationally and from a governance perspective. The two sides aim to improve the cross-border voting experience while remaining aligned with Korean regulatory and market requirements.

The agreement comes as Korea seeks stronger corporate-governance standards and broader international participation in its capital markets. Market participants often view improvements to the mechanics of shareholder voting as one step in making a market easier for overseas institutional and retail investors to access.

Broadridge said its experience on similar infrastructure projects in other jurisdictions would inform the work with Korea Securities Depository. The companies did not provide a timetable or financial terms for the planned collaboration.

Market access

Yunsu Rhee, Chairman & CEO of Korea Securities Depository, said: "KSD is committed to advancing a more efficient, transparent and globally connected capital market in Korea.

"We believe this MOU will contribute to enhancing the global accessibility of Korea's capital market, increasing its appeal to international investors, and strengthening their confidence in the Korean market."

Broadridge Chief Executive Officer Tim Gokey said the agreement represented a step forward in the relationship between the two organisations. "This MOU marks an important step in our relationship with KSD and our shared interest in advancing the cross-border proxy-voting experience.

"By bringing together Broadridge's global proxy expertise and KSD's market-infrastructure leadership, we see an opportunity to support more efficient, transparent and accessible shareholder participation in Korea's market."

The collaboration reflects a shared interest in Korea's development as an accessible and globally connected market, with a focus on the needs of international institutional and retail investors, issuers and other market participants.