Regarding the press release issued by the Financial Supervisory Service in June 2023 (titled “Notice Regarding Local Employees’ Disposal of Overseas-listed Shares Acquired Through Stock-based Compensation Programs of Multinational Companies”), the authorities changed their previous position and pre-announced on December 29, 2023 (i) a proposed amendment to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (the “FSCMA Enforcement Decree”), and (ii) a proposed partial amendment to the Financial Investment Business Regulation to exempt the sale of overseas-listed shares that have been acquired by a Korean officer or employee of a multinational company through a stock-based compensation program implemented by its headquarters from the requirements under Article 184, Paragraph (1) of the FSCMA Enforcement Decree (Under the proposed amendment, overseas-listed shares acquired through stock-based compensation programs of multinational companies are not required to be sold through a licensed broker in Korea).

Attached below is an English version of releated legal updates.

The amended FSCMA Enforcement Decree will be enacted once reviewed by the Regulatory Reform Committee and the Ministry of Government Legislation after the pre-announcement period and passed at the Government cabinet meeting. Given that the pre-announcement period of the relevant amendment is set to end on February 8, 2024, the amended FSCMA Enforcement Decree may be promulgated as early as late February or March 2024. Please refer to the following websites for details on the relevant pre-announcement:
 

• Center for Public Participation in Legislation (available in Korean, Link)

• Pre-announcement of Legislation/Change of Regulations, Legislation Information, Policies, Financial Services Commission (available in Korean, Link)

[Korean Version]