
In today’s briefing:
- Significance of The “3% Rule” In the Revision of the Commercial Act in Korea
- The Change in Record Date Is Difficult, and Most AGMs Next Year Will Be Held in June

Significance of The “3% Rule” In the Revision of the Commercial Act in Korea
- One of the most important changes in the revisions of the Commercial Act in Korea that was passed in the Parliament last week was the “3% rule.”
- In this insight, we provide details of this 3% rule and how it is likely to significantly impact the Korean equity markets.
- Major impact of the 3% rule is it is likely to shake up the BODs at many Korean companies. Many global activist investors will likely be more active in Korea.
The Change in Record Date Is Difficult, and Most AGMs Next Year Will Be Held in June
- T&D Holdings and HOYA, two March fiscal year-end companies that filed their annual securities reports more than 2 weeks ago this year, have previously filed their reports 2-3 weeks earlier.
- Only two companies will revise articles of incorporation this year and postpone the record date. Most companies will hold AGM in June next year and file reports just before AGM.
- Since institutional investors decide their votes based on various aspects of the company as a whole, companies should disclose their annual securities reports well in advance of AGM.