Reported 4 days ago
The ongoing takeover battle for Korea Zinc is intensifying pressure on South Korea's government to reform laws aimed at better protecting minority investors, amid concerns over corporate governance in family-dominated conglomerates. Recent actions by Korea Zinc Chairman Yun B. Choi, including a controversial share issuance plan and cross-shareholding arrangements, have raised skepticism over the adequacy of voluntary efforts by companies to improve stock valuations. Amid calls for legislative changes to extend board members' fiduciary duties to shareholders, concerns persist about potential backlash from business groups, potentially hindering reforms necessary to tackle the ongoing 'Korea discount' affecting local stock valuations.
Source: YAHOO