Insights | Kobre & Kim — Disputes and Investigations

In South Korea, family struggles and key shareholder disputes over control of conglomerates, or chaebols, have long posed risks to minority shareholder interests.
As the chief of South Korea’s Financial Supervisory Service raises concerns over a bid to take over Korea Zinc, many are preparing for impact on shareholder value.
Global investors, including activist funds, should consider deploying creative strategies to maximize their positions.

Opportunities for activist investors in Korea are expanding, but as an ongoing dispute involving LG shows, corporate succession disputes involving chaebols can be a source of risk.
These family struggles can lead to attempts at corporate changes that conflict with the interests of minority shareholders.
Investors and activists should understand the risks and their options by working with international counsel to protect their rights.

2023 has continued a trend of increasingly energetic shareholder activism in Korea.
The most recent annual general meeting season has shed light on the paths activist investors can take to increase their chances of success.
Our team explores the main takeaways and lessons learned from the season.

Recent developments in the Korean legal landscape have been in activist investors’ favor, opening new opportunities to assert their rights and interests in Korean companies.
Still, the intricacies of the Korean market and the dominance of chaebols mean investors should still tread carefully.
Creative strategies that navigate these complexities can bring investors the greatest chances of success.

The Korean corporate landscape is becoming more favorable for activist campaigns.
Foreign activist investors have new opportunities to push for change and maximize value, even against the biggest chaebols.
Our team explains what these developments mean and how investors can take advantage.

Recent developments in Korea have made Korean chaebols attractive to overseas activist investors.
However, the intricacies of Korean capital markets and legal practice, and the influence of chaebols, mean investors need to tread carefully.
Only by engaging in creative strategies that consider local and overseas factors can investors have the greatest chance of maximizing shareholder value.

Minority shareholders of South Korean industrial conglomerates, or “chaebols,” have had few ways to protect their interests against controlling shareholders.
However, with the passage of new amendments to the Korea Commercial Code (KCC), minority shareholders have gained new tools to even the playing field.
Our Claim Monetization and Dilution team looks at the key changes and implications that minority shareholders and activist investors should know about.