[South Korean Lawmakers Seek Merger and Acquisition Reforms to Protect Minority Shareholders] South Korean ruling party lawmakers have proposed expanding disclosure requirements for corporate acquisitions, the latest move to strengthen protection for minority shareholders and address the long-standing issue of stock market valuation discounts. Eleven lawmakers, including Oh Gi Hyoung of the Democratic Party, have proposed amendments to the Capital Markets Act, aiming to adjust rules governing mergers and acquisitions involving listed companies. Hyoung currently leads a special committee dedicated to addressing the so-called "Korean discount" issue, and his office stated on Thursday that the amendments have been formally submitted. According to the statement, the amendments would require the board of directors of the target company to publicly disclose its independent opinions on takeover offers, including whether the offer is in the best interests of all shareholders. The amendments would also expand the scope of mandatory disclosure from currently only covering matters affecting company assets or management to include corporate decisions that significantly impact shareholder interests. Under this amendment, any merger or acquisition that may affect shareholder interests will also be subject to mandatory disclosure requirements.
