The amended Korea Commercial Code of 2012 allows majority shareholders with 95% of the shares of a company in Korea, to purchase the shares of the minority for “fair value.” Thus, allowing a statutory means under Korean Law to squeeze-out a minority shareholder.
Fair value may be determined by the court if the parties are unable to reach an agreement within 30 days of a request by the majority shareholder to purchase the shares of the minority.
We advise that you place a mechanism within your shareholder agreement (if possible) noting the manner of determining fair market value.
Sean Hayes may be contacted at: SeanHayes@ipglegal.com.
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw.
- Minority Squeeze-outs in Companies in Korea
- Increased Protection for Minority Shareholder Rights in Korea under Revised Korean Commercial Code
- Tender Offers in Korea: Conditional Offers under Korea Capital Markets Act
- Involuntary Dissolution of a Company in Korea: Shareholder Disputes in Korean Companies
- Rights of “Non-Registered” Shareholders in Korea
- Korean Merger Control and the Korean FTC
- Double Jeopardy Protection in Courts in Korea: Right Not to be Tried in Korea for the Same Crime
- Korean Derivative Suit Law
- International Arbitrations in Korea under the IBA Rules
- Finding a Korean Lawyer/Law Firm for your Business in Korea