Gov't, ruling party agree to mandate public disclosure of unsolicited takeover bids
The government and the ruling Democratic Party of Korea (DPK) agreed Tuesday to introduce the so-called bear hug system by the end of this year to revitalize the nation's capital market, requiring prospective corporate acquirers to publicly disclose details of unsolicited takeover offers. Rep. Oh Gi-hyoung, chair of the ruling party's Special Committee on K-Capital Market, told reporters that his…
The Korean government and ruling Democratic Party have reached an agreement to implement a new disclosure requirement for unsolicited takeover bids by the end of the year. This move, dubbed the "bear hug" system, aims to revitalize the country's capital market. The government's Special Committee on K-Capital Market, chaired by Rep. Oh Gi-hyoung, will expedite the process of amending the Capital Market Act to incorporate the bear hug system.
Oh Gi-hyoung emphasized that the system would require prospective corporate acquirers to publicly disclose details of unsolicited takeover offers, enabling market participants to make informed decisions and facilitate transactions. The bear hug system involves a prospective acquirer publicly announcing a takeover offer to pressure the target company's board to consider and publicly state its position.
Oh Gi-hyoung pledged to persuade party members both inside and outside the government to pass the necessary legislation by the end of the year.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
