
Representative Kim Nam-geun of the Democratic Party of Korea announced on the 7th that he proposed a bill to partially amend the Capital Markets Act to ease the reporting obligation of 5% large holdings in accordance with the exercise of joint voting rights by institutional investors.
AI-generated summary
The current system requires joint holders holding more than 5% of the shares to report to the Financial Services Commission in advance when exercising joint voting rights.
(Seoul = Yonhap News) Reporter Choi Joo-seong = On the 7th, Rep. Kim Nam-geun of the Democratic Party of Korea proposed a bill to partially amend the Capital Markets Act to ease the '5% bulk holding reporting obligation' (5% rule) following institutional investors' exercise of joint voting rights.
The current system requires joint holders holding more than 5% of the shares to report to the Financial Services Commission and the Stock Exchange in advance in order to exercise joint voting rights.
The amendment contains provisions to encourage the exercise of joint voting rights by institutional investors and activities to enhance corporate value, including the establishment of a provision requiring reporting only when the exercise of joint voting rights has a significant impact on management rights.
Ten members of the Democratic Party of Korea, including Song Jae-bong, Min Byeong-deok, Kang Jun-hyun, and Lee Yong-woo, were named as sponsors of the amendment.

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