Since the 1997 Foreign Exchange Crisis Korean government adopted to streamline the restrictive measures with respect to foreign investment to Korean stock market. With the increase of foreign investment to Korean stock market, Korean economy got over the crisis within short period of time. However, the deregulation of foreign investment caused some problems, such as bust-up M&A, rapid reduction of legal capital, excessive dividend over profit, and reverse discrimination of domestic corporation due to some articles of antitrust law.
This article suggests to abolish some discriminative measures of Korean antitrust law such as the restriction of total amount of investment among certain level of conglomerates. It also suggests the deregulation of pure holding companies, including the abolishment of the restriction of debt ratio. In order to protect national security interest and national infrastructure industries, this article proposes to amend some provisions of Korea Foreign Investment Promotion Act. It suggests to clarify the restrictive measures to foreign investment and the scope of foreign investment. It also analyzes the public tender offer system. In order to enhance the disclosure system of public tender offer, this article proposes to introduce mandatory disclosure of the opinion of target's management. The target company must be allowed to ask questions to the offeror if the offeror has appropriate future management plan and the offeror must answer the questions. This article also suggests to adopt the mandatory public tender offer in case the offeror acquires one thirds of the outstanding shares of the target company. However, it does not recommend to acquire mandatorily certain ratio of the outstanding shares. Finally it analyzes the current status of the super majority voting policies under Korean Commercial Code(KCC). Even though it seems to be allowed through the interpretation of current KCC, it proposed to amend the KCC to clarify the issues.