Hanwha Securities Analyst Urges Accelerated Capital Markets Law Reform to Protect Retail Shareholders

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According to a report released yesterday (July 23) by Hanwha Investment Securities analyst Um Su-jin, South Korea should prioritize amending its Capital Markets Act over the recently passed Commercial Act revisions to provide genuine shareholder protection. The report notes that while the Commercial Act amendment focuses on post-hoc accountability, the Capital Markets Act introduces proactive safeguards including a mandatory public takeover mechanism and fair merger valuation requirements. These mechanisms would allow minority shareholders to receive equal premium prices during control changes and prevent dilution from related-party mergers, protections that major developed markets including the U.K. and Japan already provide.
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