Merger Price Set at Fair Value Instead of Market Price… Blocking Incentives for 'Stock Price Suppression'

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The Financial Services Commission has passed an amendment to the Capital Markets Act that changes the standard for calculating merger prices for listed companies' mergers and organizational restructuring from market value to fair value reflecting assets and future earnings. This measure aims to prevent stock price manipulation practices and enhance transparency by mandating the disclosure of board opinions and external evaluations.

연합뉴스-Yonhap News Agency

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(Seoul = Yonhap News) Reporter Bae Young-kyung = By requiring the application of fair value rather than market price when calculating merger prices in the future, the incentive for controlling shareholders to 'suppress stock prices'...