SOUTH KOREA Trends and Developments Contributed by: Bo Hee Park, Minhyun Cho, Ian Kim and Jun Hee Kwon, Jipyong LLC
As a practical matter, companies operating in regu - lated industries may need to take a more cautious approach to treasury share repurchase and cancella - tion programmes, including by adjusting the size and timing of buybacks. Conclusion The amendment is expected to strengthen share - holder protection and improve transparency in capital allocation by reducing the scope for strategic uses of treasury shares that may not serve the interests of all shareholders. More broadly, as part of Korea’s ongo - ing efforts to address governance concerns associ - ated with the so-called Korea discount, which has historically suppressed valuations of Korean equities relative to other markets, the amendment is expected to align corporate practices more closely with global investor expectations.
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