Over 60% of firms oppose plan for mandatory retirement of treasury stocks
The business community is raising concerns over the government’s push to enforce the compulsory cancellation of treasury stocks, with more than 60 percent of companies opposing the plan in a survey released Wednesday. The survey, conducted by the Korea Chamber of Commerce & Industry, found that 62.5 percent of the 104 listed firms polled opposed the government’s proposal to mandate the retirement of shares repurchased from shareholders. The 104 firms included in the poll held at least 10 percent of their own shares. Opposition was much greater than the 22.8 percent who remained neutral and the 14.7 percent who supported the measure. The government, backed by the ruling Democratic Party of Korea, is moving to pass a third amendment to the Commercial Act and aims to have the bill approved by the end of this month. The proposed reform would require listed companies to retire their repurchased shares, in line with President Lee Jae Myung’s push to bolster the stock market and strengthen shareholder value. Retirement of treasury stocks would reduce the number of outstanding shares, potent
