Korea’s National Pension Service rejects 10 of 41 items at six overseas firms, underscoring a more assertive stewardship approach
Headquarters building of the National Pension Service (NPS). (Photo courtesy of NPS)
The National Pension Service (NPS) has, since the beginning of this year, opposed shareholder proposals filed by conservative U.S. organizations with strong anti-ESG (Environmental, Social, and Governance) tendencies against companies like Apple and Visa, indicating that it has opposed one out of every four agenda items in overseas stock markets. Regarding Apple, it opposed a proposal for a report on China-related risks, and regarding Visa, it opposed half of the general meeting agenda items, including a shareholder proposal for a report on online child sexual exploitation risks.
According to the National Pension Service Fund Management Headquarters on April 2, the NPS, from the beginning of this year until March 25, approved 31 out of 41 voting agenda items submitted to the general meetings of shareholders of six overseas listed companies and opposed 10. Specifically, it exercised its shareholder rights for: Apple (5 agenda items: 3 approved, 2 opposed), Visa (8 agenda items: 4 approved, 4 opposed), Costco (4 agenda items: 2 approved, 2 opposed), Micron (5 agenda items: 4 approved, 1 opposed), Siemens (8 agenda items: 8 approved), and Novartis (11 agenda items: 10 approved, 1 opposed).
Among the agenda items opposed by the NPS, the one that garnered the most global attention was the proposal for disclosure of China-related risks, put forth at the general meeting of shareholders of Apple, a U.S. Nasdaq-listed company, in February. This proposal was raised by the National Center for Public Policy Research (NCPPR), a conservative private think tank active in the United States. The basis for the proposal was that approximately 90% of Apple’s products are manufactured in China, and if high tariffs were applied, iPhone production costs alone could increase by up to $10 billion annually.
However, the NPS opposed it, judging that Apple was already disclosing relevant policies and current status, and the proposal was consequently rejected. Another agenda item at Apple’s general meeting of shareholders where the NPS cast an opposing vote was the re-election of independent director Arthur Levinson. The NPS opposed it, citing concerns that his tenure as an independent director exceeded 20 years, which could impair independence due to long-term re-election. However, Director Levinson’s appointment proposal was approved by a majority vote as originally submitted (appointed).
Since the beginning of this year, the company where the NPS cast the most opposing votes was Visa, a New York Stock Exchange-listed company. Regarding Visa’s proposed amendment to its articles of incorporation, the NPS opposed it, stating that it could reduce the incentive for directors and officers to fulfill their fiduciary duties (legal responsibility to act faithfully for the company), thereby harming shareholder value. It also opposed three shareholder proposals: a report on online sexual exploitation risks, a report on the Return on Investment (ROI, profit ratio compared to investment) of inclusion programs, and the introduction of written resolutions.
Among these, the proposal for a report on online sexual exploitation risks was a shareholder proposal submitted by Bowyer Research, a conservative U.S. investment advisory firm, on behalf of the Oklahoma Tobacco Settlement Endowment Trust. The proposal called for transparent evaluation and disclosure of how the company is controlling the risk of Visa’s global payment network being misused as a funding source for the production and distribution of AI (Artificial Intelligence)-generated deepfake pornography and Child Sexual Abuse Material (CSAM). Bowyer Research was founded by Jerry Bowyer, a conservative right-wing figure who leads public opinion formation in the U.S. conservative camp. Oklahoma State Treasurer Todd Russ spearheaded the appeal for votes in favor of this proposal.
The NPS opposed it on the grounds that the company had already established relevant policies. The proposal for an ROI report on inclusion programs was also put forth by the NCPPR, the same entity that requested the China risk report from Apple, indicating that the NPS has repeatedly opposed agenda items politicized by conservative right-wing factions in the U.S. As a result of the general meeting of shareholders, the amendment to the articles of incorporation was approved, but all shareholder proposals were rejected. Regarding the specific background for its opposition to the agenda items, the NPS stated, “We cannot comment on individual agenda items.”
Regarding its overseas voting methods, the NPS stated, “Decisions are made through deliberation and resolution by the Investment Committee established within the Fund Management Headquarters, and if the Fund Management Headquarters finds it difficult to make a judgment, the Custodian Responsibility Expert Committee makes the decision, which is then exercised by the Fund Management Headquarters.”
The NPS’s voting at domestic and overseas general meetings of shareholders has garnered attention in the capital market since Chairman Kim Sung-joo, who pledged to strengthen the stewardship code (fiduciary duty principles), took office in December of last year. Since the beginning of this year, the NPS has separated its dedicated voting rights exercise organizations into domestic and overseas divisions.
In the capital market, this move has been observed as an effort to enhance professionalism and efficiency in both domestic and overseas voting. The NPS’s overseas opposition rate has consistently been higher than its domestic rate (26.65% in 2024, 25.32% in 2025 for overseas vs. 20.79% in 2024, 23.09% in 2025 for domestic), leading to speculation about whether the domestic and overseas opposition rates will converge or if the gap will persist. The NPS stated that there is “no particular reason” for the higher opposition rate overseas.
The NPS’s overseas stock return rate was 19.74% based on preliminary figures for last year, which was lower than domestic stocks (82.44%) but achieved a higher performance compared to alternative investments such as private equity fund (PEF) investments (0.32%).
Jung Suk-yee
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