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.
