In today’s briefing:
- Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st
- Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025
Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st
- Korea FSC announced on the 24th that the updated Capital Markets Act rules, approved by the Cabinet, will take effect on the 31st.
- Banning new shares to treasury stocks during spin-offs could shift board focus in Korea, reducing big shareholder influence and prioritizing the broader shareholder base.
- The capital markets law change could shift shareholder returns from buybacks to dividends, marking a key inflection point for traders, especially in Korea’s preferred stock market.
Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025
- Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
- The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs.
- This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders’ rights.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
