Latest updates

Significance of KT&G Corporation Proxy Contest
  • South Korea
  • 02 May 2006

A proxy battle between the management of KT&G Corporation and a group of dissident shareholders has culminated in the first election of a foreigner nominated by a foreign shareholder to the board of directors of a Korean listed company without the support of the company's management.

New Policy Woos Foreign Investors
  • South Korea
  • 17 May 2004

The government recently published the revised Enforcement Decree to the Foreign Investment Promotion Act, which implements new measures to attract greater foreign investment into Korea. Such measures include more specific regulations concerning the so-called 'cash grant' and 'project manager' policies.

Seoul High Court Allows Double Derivative Suit; Supreme Court May Not
  • South Korea
  • 17 November 2003

The Seoul High Court's recent decision in Eun Sub Jung v Pyong Sub Jung 2002 represents a significant landmark with respect to the issue of standing in shareholder derivative actions. However, the case is not yet final and is being appealed to the Supreme Court.

Reform of Accounting Practice Underway
  • South Korea
  • 22 September 2003

A joint task force from financial and other government agencies has submitted its final plan for the reform of accounting practice to Congress. The final plan includes heightened responsibilities for listed companies, as well as restrictions on auditors and the non-audit services they may provide. It also outlines the applicable penalties.

Supreme Court Rules that Statutory Auditors Can Act Independently
  • South Korea
  • 06 May 2003

In light of a recent Supreme Court ruling, any party to a joint venture agreement or shareholder agreement with respect to a Korean joint venture company should consider carefully the advantages and disadvantages of having two statutory auditors, and may wish to insist on the company having only one.

Will Free Economic Zones Attract Foreign Investors?
  • South Korea
  • 10 December 2002

The Korean National Assembly has passed the Act on the Designation and Operation of Free Economic Zones, with a view to promoting Korea as a key business hub of Northeast Asia. The act establishes a framework offering incentives for the purpose of attracting foreign investors.

Courts Apply Higher Standards to Directors of Banks
  • South Korea
  • 29 April 2002

The Korean courts have increasingly emphasized the fiduciary duties of directors since the Korean financial crisis of 1997. On March 15 2002 the Supreme Court held four former directors of the Korea First Bank jointly and severally liable for W1 billion (approximately $800,000) for breaching their duties as directors.

Samsung's Business Judgement Defence Fails
  • South Korea
  • 04 February 2002

The Suwon District Court has held nine former and current directors of Samsung Electronics Co Ltd jointly and severally liable for W90.28 billion (approximately $70 million) for neglecting their duties. The court rejected the business judgement rule defence.

Supreme Court Pierces Korean Corporate Veil
  • South Korea
  • 05 November 2001

The Supreme Court has stipulated the circumstances in which a dominant shareholder and representative director will be liable for the acts of a corporation.

Amended Act Strengthens Minority Shareholders' Rights
  • South Korea
  • 19 March 2001

The amended Securities Exchange Act aims to strengthen minority shareholders' rights and improve transparency of corporate governance in companies where shares are publicly traded. Amendments relate to stock options, stock redemption by profits and minority shareholders' rights concerning minimum shareholding percentages.

Stock Option Exercise Price To Be Modified
  • South Korea
  • 02 October 2000

The Ministry of Commerce, Industry & Energy has drafted amendments to the law on venture companies that aim to reduce the minimum exercise price of stock options granted to employees, officers and other eligible persons of venture companies.

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