3/12/2026
Align Partners Commits to Responsible Activism for Minority Shareholders
Korea Times (03/12/26) Whan-woo, Yi
Align Partners founder and CEO Lee Changhwan underscores the firm’s long-term commitment to strengthening minority shareholders’ rights as a homegrown hedge fund, reflecting the growing wave of shareholder activism in Korea’s stock market. This wave is gaining momentum in line with President Lee Jae Myung’s investor-friendly policies, with investors increasingly seeking to influence corporate decisions and governance, often by pressing management to adopt changes that enhance shareholder value. Yet, it has drawn mixed reactions — welcomed by those who see it as progress, but met with caution by those recalling some foreign hedge funds criticized for prioritizing quick, speculative gains over broader shareholder value. “Under the circumstances, I would like to stress that Align Partners naturally pursues long-term, responsible investments, unlike foreign hedge funds that tend to view Korea as just one market among many,” Lee said in an interview with The Korea Times at the company’s office in Seoul’s financial district of Yeouido, Wednesday. Backing up his argument, the CEO said Align Partners is “not inherently virtuous, but circumstances make it inevitable,” stressing compliance with local rules as a licensed asset manager registered under the Financial Services Commission and oversight by the Financial Supervisory Service. At the same time, he noted the demanding nature of long term commitment in Korea, where many listed companies have controlling shareholders with stakes exceeding 10 percent — a rare trait compared with markets like the United States or Japan. “Because of this ownership structure, it is not easy to carry out challenging initiatives with persistence over a long period. But regardless of such difficulties, I sincerely hope our actions will stand as positive examples contributing to the development of the capital market,” Lee said. “In this respect, there can be differences in how we operate compared with foreign funds.” Lee’s remarks came as Align Partners has emerged as a pioneering force among Korea-origin hedge funds, with assets under management reaching $1 billion in less than five years since its founding in September 2021. Before launching Align Partners, Lee worked at Goldman Sachs (GS) and KKR (KKR). Since its founding, it has executed shareholder activism campaigns across a range of high-profile companies, including K-pop powerhouse SM Entertainment (KOSDAQ: 041510), leading financial groups such as KB (KB), Shinhan (SHG), Hana (BKK: HANA), and Woori (NYSE: WF), as well as construction equipment manufacturer Doosan Bobcat (KRX: 241560). The company focuses on exploring opportunities arising from the “Korea discount,” a chronic undervaluation of Korean stocks that the president pledged to address after taking office in June 2025. The CEO welcomed the government’s capital market reform drive, noting three rounds of revisions to the Commercial Act aimed at enhancing corporate governance transparency, boosting shareholder returns and reinforcing the fiduciary responsibility of board members, among other measures. “These measures are something that should have existed naturally, but implementing the parliamentary amendments was a lengthy process and that is why the reform carries real significance,” he said. Asked whether the “Korea discount” has been resolved, Lee replied, “The discount phenomenon is starting to ease slightly, amid growing expectations and interest that corporate behavior will change.” The CEO noted that foreign capital, in particular, is “showing unprecedented levels of interest in Korea” and encouraged greater participation, highlighting that roughly 30 percent of Align Partners' investors are from abroad, mostly U.S. institutional investors. “I believe we are still in the early stages of capital market reform,” he said. “With numerous investment opportunities stemming from corporate governance improvements and restructuring across the broader financial landscape, I would suggest that now is the time to pay close attention to the Korean market.” Regarding the benchmark KOSPI surpassing milestones of 5,000 and even 6,000 points earlier this year, the CEO forecast that the main index is “still far from even halfway through its reform-driven growth cycle.” He referred to the case of Japan's Nikkei, which rose nearly seven- to eightfold over more than a decade of reform, saying, “Much of that sustained growth was driven by governance improvements.” Lee forecast that although the Iran conflict is weighing on the market and caution is warranted, governance reform still has “ample room to influence the stock cycle alongside external factors,” underscoring its potential to strengthen investor confidence and shape longer term market dynamics. To accelerate governance reform, the CEO emphasized three priorities. First, boards must change their behavior to honor shareholder rights and comply with measures such as the 3 percent rule, which limits dominant shareholders to just 3 percent of voting power when electing audit committee members. Secondly, corporate culture must move beyond the entrenched “owner” mindset and recognize that listed companies are collectively owned by all shareholders. Lastly, strong legal precedents should anchor fiduciary responsibilities, giving corporate law the weight of a constitutional principle within the business sphere. For companies in Align Partners' portfolios, the CEO said the firm has submitted shareholder proposals to six firms — DB Insurance (KRX: 005830), Coway (KRX: 021240), Gabia (KOSDAQ: 079940), Dentium (KRX: 145720), SoluM (KRX: 248070), and A Plus Asset Advisor (KRX: 244920)— all of which have general meetings of shareholders scheduled this month. DB Insurance will hold its meeting on March 20, while the others are scheduled to convene through the end of March. In particular, Align Partners is in a dispute with IT infrastructure and cloud services company Gabia, having filed an injunction to add a "say-on-pay" advisory shareholder proposal agenda at the general meeting on March 26. An advisory shareholder proposal, even if passed at a general meeting, is nonbinding — it cannot legally compel the board, but it signals shareholder sentiment, applies reputational pressure and can influence future governance practices.
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