About the Event

In Korea, several proposals have been made in recent years to introduce a mandatory bid rule (MBR). The government’s version aims to reduce the financial burden on the acquirer by requiring them to make an offer to purchase only 50% + 1 of the total shares. In contrast, the opposition party’s version places greater emphasis on protecting minority shareholders by requiring acquirers to offer to purchase all remaining shares.

Beyond this trade-off, the European experience with the mandatory bid rule raises concerns that the rule may not achieve its intended goals if not properly designed. Recent research shows that many EU companies circumvent the minimum price regulation by launching voluntary full takeover bids or crossing the threshold through acquisitions below the current stock market price, such as using call option transactions.

In light of these concerns, AICG has invited Mr. Rolf Skog, the Director General of the Swedish Securities Council, to deliver a keynote address on these issues and provide recommendations for Korea. We welcome academics and policymakers interested in this topic to join the seminar.