A year of changes in Korean business law

Author: | Published: 1 Jun 2005

The past 12 months have seen a number of amendments to key laws and regulations in Korea affecting trade, mergers and acquisitions, pensions and investments in real estate.

Takeovers

The first change saw Korea's National Assembly begin the year by passing several amendments to the Securities and Exchange Law, which became effective on March 29 2005. These amendments relate to tender offer rules and shareholding disclosure rules (the 5% reporting rule) and are aimed at strengthening precautionary measures against hostile M&A.

The amendments to tender offer rules remove the restrictions prohibiting an investor from making multiple tender offers within a six-month period as well as restrictions preventing a company that is subject to a tender offer from issuing voting stocks and other equity-linked debt securities during the tender offer period.

The amendments to the 5% reporting rule strengthen the disclosure obligation of investors by: (i) requiring an investor to disclose...