South Korea's FSC Reintroduces Mandatory Takeover Rules and Shareholder Protections on July 29

According to the Financial Services Commission (FSC), South Korea's financial regulator submitted amended Capital Markets Act provisions to parliament on July 29 aimed at strengthening protections for minority shareholders during corporate restructuring.

The FSC will reintroduce mandatory takeover rules requiring acquirers of listed company shares to tender for minority stakes at prices reflecting control premiums. Following physical asset splits, subsidiaries listing on the market must offer a set percentage of new shares to parent company minority shareholders. The FSC also plans to mandate short-term trading profit disgorgement by listed company executives and impose mandatory disclosure of serious criminal records held by corporate officers, targeting enhanced market integrity and investor protection.