SEOUL, July 31 (Yonhap) -- The Financial Services Commission (FSC) said Friday new strict regulations will be implemented in early August to curb "split listing" by conglomerates, in a bid to bolster the fiduciary duty of listed firms and interests of ordinary shareholders.

Split listing, also referred to as duplicate listing, occurs when a core business division is spun off and listed separately, and has long been cited as one of the major reasons behind relatively low values for local stocks.

Financial regulators have been working to map out new regulations to ban the practice of split listing "in principle," while making efforts to revise relevant rules and enhance shareholder protection.

Under the new regulations set to take effect on Aug. 3, the voting right of the biggest shareholder and related parties of a parent company will be limited at 3 percent if the parent company's affiliate is listed.

Over a quarter of all issued shares is required to support the split listing.

Also, a parent company's board is required to review the impact of split listing on its shareholders and draw up measures to ensure shareholder protection.

sam@yna.co.kr

(END)

  • Police drop underage dating charge against actor Kim Soo-hyun
  • Fans, celebrities support BTS' Grammy boycott
  • S. Korea formally completes development of homegrown KF-21 fighter jet
  • S. Korea in talks with U.S. military over air base access following white phosphorus leak: sources

  • BTS' 'Arirang' returns to top 10 on Billboard 200

  • S. Korea formally completes development of homegrown KF-21 fighter jet

  • Police drop underage dating charge against actor Kim Soo-hyun
  • Fans, celebrities support BTS' Grammy boycott
  • S. Korea in talks with U.S. military over air base access following white phosphorus leak: sources

  • Trump threatens 'substantial' Section 301 tariffs on EU after Google fine

  • Fans, celebrities support BTS' Grammy boycott

  • (2nd LD) U.S. military drone flies over inter-Korean border area, prompts civilian evacuation
  • U.S. mulling US$100,000 fee for foreign students hoping to work after graduation: WSJ
  • S. Korea in talks with U.S. military over air base access following white phosphorus leak: sources
  • SK Group chief purchases shares of SK hynix for 1st time