Korea Passes Another Reform Bill in Push for Shareholder Value

South Korea’s parliament passed a landmark reform bill mandating companies cancel treasury shares, marking a major step in its corporate governance overhaul. The legislation, approved in February 2026 after prolonged debate, aims to enhance shareholder value by reducing excess shares held by firms. The reform aligns with the government’s broader push to strengthen market transparency and attract foreign investment amid sluggish stock valuations. Companies must now retire repurchased shares instead of holding them, potentially tightening supply and lifting share prices. Analysts view this as a critical move to align Korea’s corporate practices with global standards, boosting investor confidence.