Restricting Voting Rights of Financial Companies for Subsidiary Shares Surpassing Five Percent

Financial companies affiliated to large firms will be restricted in exercising voting rights for subsidiary shares bought after 1997 which surpass five percent, starting in May of next year.

Also, all financial companies which own over 20 percent of other non-financial companies’ shares without approval from the government will be given orders to dispose the excess shares.

The Ministry of Finance and Economy made plans holding the above details in the revised bill for the “Structural Improvement for Financial Industry Law,” and announced that it will be submitted to the National Assembly early next year.

Jong sik Kong kong@donga.com