Democratic Party lawmaker Oh Gi Hyoung and 10 colleagues have formally submitted
an amendment to the Capital Markets Act to tighten takeover rules and bolster
minority shareholder protection as part of a special committee effort to tackle
the so-called Korea discount. The draft would require target company boards to
publish an independent opinion on takeover offers, including whether the offer
serves the interests of all shareholders. It would also expand mandatory
disclosure beyond items affecting company assets or management to any corporate
decisions that materially affect shareholder interests, bringing M&A proposals
likely to affect shareholder value under disclosure obligations.
