South Korea’s Financial Services Commission published expert proposals for a capital market policy roundtable to be chaired by President Lee Jae-myung at the Korea Exchange. Discussions will cover shareholder protection, KOSDAQ restructuring and demand from institutional and long-term investors. The KOSDAQ debate revisits weak institutional participation and delayed exits for unviable companies, problems targeted by the FSC’s December 2025 overhaul.
Korea Capital Market Institute senior research fellow Lee Hyo-seop proposes stronger institutional shareholder engagement and a phased approach to mandatory tender offers. The tender offer discussion weighs requiring purchases of 50% plus one share against 100% of a target’s shares, balancing shareholder protection against higher acquisition costs and possible constraints on M&A. Recommendations also include easing joint-holder requirements under the 5% shareholding disclosure rule to facilitate cooperation among institutional investors. Separately, previously scheduled requirements for fair merger valuations and external assessments are due to take effect on Dec. 9, 2026.
Korea Institute of Finance research fellow Lim Hyeong-jun recommends expanding venture capital exits through M&A and secondary transactions, strengthening underwriter and institutional investor accountability in initial public offerings, and accelerating exits for weak companies. Dividing KOSDAQ into market segments could attract institutional capital but risks stigmatizing companies in lower tiers. On investment demand, Shinyoung Securities research head Kim Hak-kyun reports record household inflows into equities of KRW 147.4 trillion through Nov. 5, 2026. His recommendations include allowing minors to open individual savings accounts, linking incentives to holding periods and reviving publicly offered funds, alongside better dividend payouts and management of the listed company population.