President Lee Jae-myung raised concerns on November 13 about the possibility that some companies are intentionally keeping their stock prices low to reduce tax burdens during inheritance processes. Speaking at a capital market policy meeting in Yeouido, Seoul, he noted, "There are still many companies valued below their book value," suggesting that the issue may not solely be related to performance or growth.
He highlighted suspicions that companies might be managing their stock prices deliberately low during inheritance. This raises distrust among shareholders, who may feel that controlling shareholders are abusing their management rights rather than respecting minority shareholders as owners.
President Lee also addressed investor concerns regarding dual listings and the outflow of retained earnings from companies. He expressed worries that investors might think, "Could they be strangely dual-listing to take our assets?" and "Could they be siphoning off retained earnings through a so-called tunnel?" He emphasized the need to restore trust in the market.
Additionally, President Lee stated he would listen to on-the-ground opinions regarding improvements to the mandatory public buyout system. He stressed the importance of providing fair opportunities for minority shareholders while also considering the potential effects on the mergers and acquisitions (M&A) market.
He cautioned, "If we are not careful, it could become an obstacle that effectively blocks M&A," underscoring the need to balance market requirements with the protection of minority shareholders.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.