Politics · South Korea · 9 hrs ago
South Korea’s president orders new team to lead capital market reforms
At a meeting in Seoul, President Lee Jae-myung called for a senior team to lead capital market reform as South Korea’s stock market was in a downturn.
Lee said correcting what he sees as unfairly low valuations for South Korean companies is a government priority.
He ordered a review of measures that can block hostile takeovers, which he described as an important way to improve the market.
A proposed rule would let ordinary shareholders sell their shares at the same price as a controlling owner when a company changes hands.
Lawmakers are divided over whether buyers must offer for at least 50% plus one share or all shares, and the bill has not yet reached a full vote.
Lee said he favours encouraging more takeovers, arguing that this could benefit shareholders across the market.
He asked lawmakers to reach a decision, while also calling for a review of companies with very large controlling stakes and those that do not hold investor briefings.
South Korean President Lee Jae-myung ordered the creation of a senior-level body to lead capital market reforms.
At a policy meeting on November 13, he called market normalization a firm government policy goal and said undervalued shares were an abnormality.
Lee urged a review of measures that block hostile takeovers and called for steps to activate mergers and acquisitions.
Experts disagreed over whether a proposed mandatory tender offer should cover at least 50% plus one share or 100% of a company’s shares.
Lee said he favored expanding the market through more mergers and acquisitions, but urged the National Assembly to reach a decision.
- Who
- President Lee Jae-myung and participants in a capital market policy meeting, including government officials and finance experts.
- What
- Lee ordered the creation of a senior-level body to lead capital market reforms and called for a review of barriers to hostile takeovers.
- When
- November 13, 2026.
- Where
- The Korea Exchange in Yeouido, Yeongdeungpo District, Seoul.
- Why
- Lee said market normalization was a firm government policy goal and that shares were unfairly undervalued because they were listed in South Korea.
Supporters of a 50%-plus-one-share tender offer
Supporters of a 100% tender offer
Mandatory tender offer coverage
Supporters of a 50%-plus-one-share tender offer
Some experts argued that requiring an offer for at least 50% plus one share would protect ordinary shareholders while allowing acquisitions to proceed.
Supporters of a 100% tender offer
Some retail shareholders called for coverage to rise to 100%.
Effect on mergers and acquisitions
Supporters of a 50%-plus-one-share tender offer
Lee said he favored activating mergers and acquisitions to expand the market and benefit shareholders.
Supporters of a 100% tender offer
Private equity industry representative Park Byeong-gwon argued that a 100% requirement would increase financing burdens and discourage mergers and acquisitions.
A bill requiring a buyer who acquires at least 25% of a company and becomes its largest shareholder to make a tender offer for at least 50% plus one share passed the National Assembly’s Legislation and Judiciary Committee.
Lee held a capital market policy meeting at the Korea Exchange and ordered the creation of a senior-level reform body.
Meeting participants voted by a show of hands on proposed tender offer coverage, with more supporting the 50%-plus-one-share option; online comments favored the opposite result.
- Meeting date
- November 13, 2026
- Meeting venue
- Korea Exchange, Yeouido, Seoul
- Proposed tender offer threshold
- At least 50% plus one share, or 100%
- Bill status
- Passed the Legislation and Judiciary Committee in September; National Assembly plenary consideration was on hold
- KOSPI level
- The index, which first crossed 9,000 in June, was fluctuating in the low-to-mid 5,000s in November
What people are saying
Capital market normalization is a firm policy direction and commitment of our government.
I am closer to the view that we should expand the pie, even if we get criticized, and that activating M&A will normalize the market as a whole and benefit all shareholders.
If it is 100%, the funding burden will grow and M&A will be discouraged.
If you ask foreign investors how they could buy Korean stocks, the response is that volatility is too high.