Record Surge in Shareholder Activism Across Asia Drives Corporate Governance Reforms, According to Diligent
Shareholder activism in Asia has reached unprecedented levels, with over 200 companies targeted in both 2023 and 2024, up from just 134 in 2021. This surge reflects the growing importance of corporate governance and shareholder engagement across the Asia-Pacific (APAC) region, as highlighted in the latest report by Diligent Market Intelligence. The report, titled Shareholder Activism in Asia 2025, provides a comprehensive analysis of key trends shaping activism in the region and its broader implications for corporate governance.
Japan Leads the Charge in Shareholder Activism
Japan has emerged as the epicenter of shareholder activism in Asia, with 108 campaigns launched in 2024, marking a staggering 74% increase compared to 2018. Despite global market turbulence that disrupted many economies in early 2025, Japan remained largely insulated, with 19 new campaigns initiated in the first quarter alone. This resilience underscores the country’s robust domestic focus on governance reforms, which has shielded it from geopolitical tensions and other external headwinds.
“In Japan, the largely domestic focus has allowed activism to thrive despite global uncertainties,” said Josh Black, Editor-in-Chief at Diligent Market Intelligence. “Governments across Asia are prioritizing corporate governance reform, while activists are bolstering their teams to capitalize on emerging opportunities.”
South Korea: A Watershed Year for Activism
South Korea has also witnessed a significant rise in shareholder activism, with 78 public campaigns in 2024, a year widely regarded as a turning point for the market. This marks a dramatic increase from just 16 campaigns in 2018 and eight in 2019. However, shifting political dynamics appear to have tempered activity in early 2025, highlighting the sensitivity of activism to regulatory and political environments.
Governance Reforms: A Top Priority for Activists
Corporate governance reforms remain a top priority for activists operating in Asia. In the first three months of 2025, 17 governance-related demands were advanced at Japan-based companies, alongside 16 in South Korea. These demands often focus on improving transparency, enhancing board accountability, and aligning executive compensation with performance metrics. Such efforts underscore the critical role of governance in driving long-term value creation and stakeholder trust.
Key Players Shaping the Activist Landscape
The report identifies several prominent players leading the charge in shareholder activism across Asia. Strategic Capital, a Japan-focused firm, topped the Diligent Market Intelligence watchlist as the most active activist in the region. It was followed closely by Align Partners Capital Management, which operates primarily in South Korea. Tied for third place are Oasis Management Company and Dalton Investments, both based in Hong Kong but with a strong focus on Japan.
These firms are leveraging their expertise to push for meaningful changes in corporate practices, from governance reforms to operational improvements. Their influence is reshaping how companies in the region approach shareholder engagement and strategic decision-making.
Rising Activism in Emerging Markets
As foreign investors increasingly turn their attention to Asia, emerging markets like Hong Kong and Singapore have become hotspots for shareholder activism. Hong Kong ranked as the third-most active market in the region, with the volume of public campaigns peaking in 2024. Similarly, Singapore saw a surge in activism last year, driven largely by demands to appoint or remove personnel.
In both markets, activists are focusing on leadership changes and governance improvements to unlock shareholder value. These developments highlight the growing sophistication of activism in emerging economies and its potential to drive transformative change.
Broader Implications for the APAC Region
The rise of shareholder activism in Asia is not just a trend—it’s a catalyst for systemic change. Governments and regulators are increasingly recognizing the importance of fostering transparent, accountable, and sustainable corporate practices. This shift is creating fertile ground for activists to advocate for reforms that benefit both shareholders and broader stakeholders.
For boards and investors operating in the region, staying ahead of these trends is essential. The report outlines three key themes that should be on every company’s radar:
- Governance Reforms: Activists are pushing for stronger governance frameworks and enhanced disclosures to improve transparency and accountability.
- Leadership Changes: Demands to appoint or remove personnel are becoming more common, particularly in emerging markets.
- Sustainability Initiatives: As environmental, social, and governance (ESG) considerations gain prominence, activists are increasingly targeting companies to adopt more sustainable practices.
Why This Matters for Global Investors
The surge in shareholder activism across Asia presents both challenges and opportunities for global investors. On one hand, heightened scrutiny and demands for reform can create short-term disruptions. On the other hand, these pressures often lead to improved corporate performance and long-term value creation.
By understanding the drivers of activism in the region—ranging from governance reforms to geopolitical stability—investors can better position themselves to navigate this dynamic landscape. Companies that proactively address shareholder concerns and embrace best practices are likely to emerge stronger and more resilient in the face of increasing activism.
