On January 9, 2020, the National Assembly passed a partial amendment to the Financial Services and Capital Markets Act (“FSCMA”) (“Amendment”) that obligates listed companies with total assets of KRW 2 trillion or more to appoint at least one female director to the board.  The Amendment could be a reflection of the gender quota system or gender equality regulations for corporate boards that are effective in a number of European countries.

More precisely, the Amendment states that a listed company with total assets of at least KRW 2 trillion should not have an all-male (or all-female) board and should come into compliance with this requirement within two years from the effective date of the Amendment.

The Amendment will take effect six months from the date of publication, or August 5, 2020 which is six month from the date of publication of February 4, 2020.  Accordingly, listed companies that do not have any women on their board will need to appoint a female director by August 5, 2022, in order to fully comply with the new FSCMA.