South Korea Passes Bill Mandating Treasury Stock Cancellation

The National Assembly's Legislation and Judiciary Committee subcommittee passed the third Commercial Act amendment bill on Wednesday, led by the Democratic Party of Korea. The bill, which mandates companies to cancel acquired treasury shares, is expected to be put to a plenary vote as early as Friday.

Oh Ki-hyung, chairman of the Democratic Party's Korea Premium K-Capital Market Special Committee, said after the bill passed the subcommittee: "80 to 90 percent of the Democratic Party and Lee Jae-myung government's capital market policies were issues the Yoon Suk Yeol government had been considering." He added, "Beyond progressive or conservative lines, we deliberated on institutional reforms with a shared awareness of the need to advance, innovate, and energize the capital market."