In today’s briefing:
- ESG Analysis of Korea’s Sole Electricity Supplier: Korea Electric Power Corporation (KEPCO 015760)
- Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are…..
ESG Analysis of Korea’s Sole Electricity Supplier: Korea Electric Power Corporation (KEPCO 015760)
- Environmental: KEPCO’s power transmission tower construction is destroying ecosystems and posing a climate risk in various areas, which is also why the coal mine development project in Australia was suspended.
- Social : 58% of KEPCO’s suppliers were found to be illegal subcontractors leading to controversy over work environment issues. Also, the construction of power transmission towers sparked serious community conflicts.
- Governance : Despite KEPCO’s large deficit, the company’s moral risk and poor risk management issues, such as corruption and excessive wages of employers, continue to surface.
Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are…..
- The current criteria of 10 billion-yen in tradable market capitalization is too small by definition of prime market, “market-cap suitable for institutional investors,” and should be reviewed in near future.
- It’s natural that there will be difference in the stock prices of companies that can show results that are in line with their disclosed plans and those that are not.
- Simply raising shareholder returns won’t, in theory, positively impact on stock price. Mere increased shareholder returns would be seen as sign that the company reached the end of its rope.
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