End of treasury stock? Korea Inc. faces new rules, new risks

South Korea’s biggest conglomerates are rushing to scrap trillions of won in treasury stock, as a new law forces companies to retire shares long used as a quiet but powerful tool for control — boosting shareholder returns while stripping firms of a key line of defense. The revised Commercial Act, which took effect March 6, requires newly acquired treasury shares to be canceled within one year and existing holdings within 18 months. The rule has triggered a wave of large-scale cancellations acros

By The Korea Herald