From west to east: How shareholder activism has taken root in Asian markets
Diligent Market Intelligence (DMI), in association with Alliance Advisors, has published its Shareholder Activism in Asia 2025 report, which explores the evolving landscape of shareholder activism and strategic approaches being adopted by companies and investors.
The report contains data and insights from DMI's market-leading shareholder engagement, proxy voting, and activist shorts datasets, as well as an interview with Jen Sisson, CEO of the International Corporate Governance Network (ICGN).
The rise of shareholder activism in Asia
Shareholder activism in Asia has been on the rise for almost a decade, with over 200 companies being targeted annually by activist campaigns in recent years. This trend is particularly strong in Japan, where the number of campaigns has increased by 74% since 2018, and in South Korea, where 78 public campaigns were launched in 2024, up from 16 in 2018.
However, while the Japanese market has proved relatively resilient in spite of potential trade barriers and market volatility, the opening months of 2025 have seen a relative slowdown in South Korea thanks to political instability, with only 22 public campaigns in the first quarter compared to 52 in the same period of 2024. It’s widely expected that the push for better governance may regain momentum in the months ahead, particularly if the opposition Democratic Party, widely expected to win the upcoming presidential election in June 2025, implements proposed reforms under its Korea Boost-Up Program. The initiative emphasizes enforceable legal protections for minority shareholders, in contrast to the ruling party’s more voluntary Corporate Value-Up Program.
Shaping corporate governance
Long thought of as focused on extracting dividends and share buybacks from fortress balance sheets, activists in Asia are increasingly focusing on governance issues such as board independence, capital allocation and remuneration. They are pushing for better disclosure of capital allocation policies, the rationale for holding non-strategic assets, and the implementation of more independent boards instead of pushing for more radical steps. However, these tactics are seen as leading to softening support for structures that could be used to entrench management.
This shift is driven by the recognition that improvements in governance practices can significantly impact value creation, as well as companies and investors signing up to governance and stewardship codes respectively. In addition, scandal-hit companies have found themselves particularly vulnerable, with activists leveraging the media to raise awareness of valuation and oversight concerns.
Key players
DMI has ranked the most impactful local activists based on the volume of companies targeted and their success rate for resolved public demands over a 15-month period to March 31, 2025. The key players were:
- 1st: Strategic Capital
- 2nd: Align Partners Capital Management
- Joint 3rd: Oasis Management Company & Dalton Investments
- Joint 5th: Nippon Active Value Fund, Hibiki Path Advisors, LIM Advisors
- Joint 8th: Swiss-Asia Financial Services & 3D Investment Partners
Future trends
Aided by political support for governance reform and stewardship, shareholder activism in Asia is expected to continue the focus on governance issues, such as board independence, capital allocation and remuneration.
Activists are increasingly using a combination of public and private channels to exert pressure, and there is a growing sophistication in their research and engagement strategies, which may seek to maximize turnout and support for activists among stewardship teams and retail shareholders alike.
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