[Invest&Law] 13 Landmark Cases Hindering Capital Market Development

Publication of Case Analysis Book by Korea Corporate Governance Forum

13 Landmark Cases Hindering the Development of the Capital Market. Korea Corporate Governance Forum

The Korea Corporate Governance Forum (Chairman Namwoo Lee, hereinafter referred to as the Forum) has published a book titled "13 Landmark Cases Hindering the Development of the Capital Market," which analyzes representative precedents that impede the advancement of the capital market.

Spanning a total of 176 pages, this book was planned to raise awareness of the need for specific legal amendments to resolve the Korea Discount and to advance the capital market. It was completed through the combined efforts of experts both inside and outside the Forum. The Forum is a group of experts working to establish desirable relationships between investors and companies, improve corporate governance, and promote sustainable growth.

The cases introduced in the book as precedents hindering the development of the capital market include: the Most Paid-in Capital Judgment and the Samsung Everland case; the Hyundai Securities shareholder derivative lawsuit case; the confirmation lawsuit on the non-existence of the Foreign Exchange Bank shareholders' meeting resolution; the Yent case; the Optional Capital case; the Shinsegae shareholder derivative lawsuit case; the Jeonbuk Express case; the Dongwon Industries case; the Hanwha S&C case; the Ultra Construction case; the Samsung Asset Management case; the Seemotec case; and the Hanjin Group case, totaling 13 cases.

In the foreword, Chairman Namwoo Lee stated, "The Forum has emphasized the need to amend the Commercial Act to explicitly stipulate directors' fiduciary duties to shareholders in order to address the fundamental causes of the Korea Discount." He pointed out, "Behind this movement to amend the Commercial Act lie precedents that strictly distinguish between shareholders' interests and the company's interests in ways that do not conform to international standards or deny the legal status of shareholders."

The book contains major precedents interpreted as weakening the legal status of shareholders and hindering the development of the capital market. Contributors to the writing include Juyoung Kim, lead attorney at Hannuri Law Firm; Sanghoon Lee, professor at Kyungpook National University Law School; and Kwangjoong Kim, attorney at Class Hangyeol Law Firm.

The full text of the book can be downloaded for free from the Korea Corporate Governance Forum website.

Hanju Jo, Legal Times Reporter

※This article is based on content supplied by Law Times.

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