South Korea Prioritizes Three Capital Market Reforms: Mandatory Tender Offers, Fair M&A Valuation, Dual Listing Ban

According to Asia Economics, Democratic Party legislator Kim Nam-geun, who chairs the National Assembly's Capital Markets Committee, outlined three legislative priorities for the second half of 2026 in a recent interview. The first priority is implementing a mandatory tender offer system to protect minority shareholders when corporate control is acquired. Kim stated the measure would prevent acquirers from paying premium prices to controlling shareholders while undervaluing remaining stakeholders' shares. Second, Kim called for urgent adoption of fair valuation standards for M&A mergers that consider asset value beyond stock price alone; a related capital market law amendment has already passed committee review and awaits plenary session voting. Third, Kim indicated the ruling party would pursue legislation to prohibit dual listings, criticizing how companies spin off new business subsidiaries and list them separately, leaving existing parent company shareholders harmed. He emphasized all three reforms directly address "Korea Discount" issues undermining market confidence.
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