President Lee Jae-myung (李在明) indicated plans for an exhaustive review of systems that impede hostile M&A and stronger capital market reforms, and outlined measures including the removal of poorly performing companies from KOSDAQ.
South Korean President Lee Jae-myung (李在明) said on the 13th at a capital market policy discussion meeting held at the Korea Exchange in Seoul that M&A involving undervalued companies should be encouraged, and called for an exhaustive review of the current systems that impede hostile M&A.
That day, President Lee Jae-myung (李在明) also called for the establishment of a dedicated body to promote capital market reform and attended the meeting wearing a red tie, symbolizing rising stock prices. He instructed officials to improve the delisting system to quickly remove poorly performing companies from the KOSDAQ market.
He also said that companies operated like closely held personal businesses, with excessively high ownership stakes held by major shareholders, should be considered for exclusion to a certain extent from the perspective of listing reviews. He stressed the need for a comprehensive review of market entry and exit, as well as the valuation system.
He did not, however, mention single-stock leveraged exchange-traded funds (ETFs) that day.