The Korean government recently proposed the enactment of legislation/amendment bills with respect to the Korean Commercial Code, the Monopoly Regulation and Fair Trade Law, the Act on Supervision of Financial Groups (collectively referred to as the “Three Laws of Fair Economy”), and the Class Action Act. Many of these proposals are likely of great interest to market participants, such as the introduction of multi-level derivative suits and class actions, the separate election of audit committee members, the partial removal of the exclusive criminal referral powers of the Korea Fair Trade Commission and the expansion of the scope of parties subject to regulations against self-interested transactions.
We plan to provide an overview of key terms and implications of these proposed changes over two newsletters, the first of which (attached below) deals with the potential impact on corporate governance and M&A.
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