South Korean companies will be required to disclose details of "key decisions" made concerning merger deals in a bid to protect investors, the South Korean Financial Services Commission (FCS) said in a press release on Tuesday.
The FCS plans to issue the proposed changes in a notice before the end of February and start enforcing the new regulations next month.
The announcement was made a day after the Seoul Central District Court ruled that Samsung Electronics Co. Ltd. Executive Chairman Lee Jae-yong was not guilty of violating South Korea's Capital Market Financial Investment Business Act. At present "...details of board meetings related to a merger are not disclosed, making it hard for shareholders to raise issues even when the board makes a decision that only benefits the major shareholder," the FCS said.
