Tuesday, September 19, 2006
South Korea Revising Chaebol Regulations
According to an article today, South Korea plans to revise regulations regarding chaebol by the end of the year. Among the anticipated changes are encouragement of holding companies, limitations on circular shareholding and a review of the current prohibition on large companies from investing more than 25% of their equity in other companies. Through these practices, the control of many companies rests in the hands of a few powerful shareholders. This has been responsible for slow corporate governance changes in South Korea.