S. Korea moves to protect local firms

S. Korea moves to protect local firms

SEOUL: South Korea has introduced new rules to help domestic firms protect themselves from hostile takeover bids by foreign investors, officials said on Monday.

The new rules will take effect in March, the Ministry of Finance and Economy said.

South Korean firms have been calling for measures to allow them to fend off hostile takeover bids.

Investors who hold a stake of five percent or more in any one firm will be banned from exercising voting rights or buying additional shares for five days if they make public their intention to secure a say in management in the company, the ministry said. -- AFP