South Korea's FSC Allows Low-Stake Subsidiaries to List Without Shareholder Approval Under New 10% Threshold

According to South Korea's Financial Supervisory Commission, new guidelines released for duplicate subsidiary listings now permit companies to proceed without shareholder approval if the subsidiary accounts for less than 10% of the parent company's revenue, operating profit, or assets. Subsidiaries established through acquisition or incorporation require board approval but not mandatory shareholder voting, though the board must implement five fiduciary duties including shareholder impact assessments and disclosure requirements. The 3% voting rule—limiting voting rights of major shareholders above 3% to 3%—replaces the previously discussed majority-of-minority requirement. Companies like Sono International and Hanwha Energy, which filed for listing in recent weeks, fall under these new provisions.
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