Monday, March 28, 2005

Stockmarket_South Korea rules on disclosure

South Korea will require investors who buy more than 5 percent stake in a company to disclose their purpose of the investments, according to the Financial Supervisory Service in Korea, reported by IHT.

The new rules take effect tomorrow, after the Federation of Korean busness, the main lobbying group for corporate South Korea, urged the government to adopt rules to prevent overseas fund from taking over Korean Businesses.

The direct investment in domestic stocks was allowed in January 1992. The investment limits have been gradually expanded to allow individual investment below 50 percent just after the 1997 Financial Crisis. Totally 685 companies are listed in the market at the end of February, with 3 trillion won(3 billion US dollars) trading per day.

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