The Financial Services Commission announced that the government has approved a revision to the Enforcement Decree of the Financial Investment Services and Capital Markets Act that tightens the treasury share regime for listed companies. The changes expand disclosure duties to all listed companies that hold treasury shares, strengthen rules on how those shares can be retained and disposed of, and align the capital markets framework with the revised Commercial Act. The expanded disclosure requirement replaces the previous threshold that applied only to companies holding treasury shares equal to at least 1 percent of issued stock. Listed companies will now have to disclose their treasury share holding status and disposal plans across the board, in line with the revised Commercial Act requirement that companies prepare those plans and obtain shareholder approval. The decree also removes provisions on issuing exchangeable bonds backed by treasury shares, updates trust agreement rules by barring disposal during the trust period and requiring immediate return at termination or cancellation, and revises the disposal period for treasury shares acquired through stock option exercises so that it matches the retention period approved in the treasury share plan, capped at five years. In addition, disposal of treasury shares to an unspecified group of individuals will be prohibited, with only equal distribution to existing shareholders or disposal to specified third parties permitted. Business report disclosure standards will be updated to require more detailed information on treasury share holdings and disposal plans, including the original purpose of acquiring the shares. The revised decree and subordinate regulations will take effect on June 30. The Financial Services Commission also said subordinate rules and corporate disclosure reporting standards will be updated in time for implementation.
South Korea Financial Services Commission2026-06-23
South Korea Financial Services Commission announces approval of decree expanding treasury share disclosure and disposal rules for listed companies
The Financial Services Commission said the government has approved revisions to the FSCMA Enforcement Decree that broaden treasury share disclosure obligations to all listed companies holding such shares and tighten disposal rules. The changes also remove rules for exchangeable bonds backed by treasury shares, update trust and stock option related disposal requirements, and restrict disposals to existing shareholders or specified third parties. The revised decree takes effect on June 30.