The amended 5% rule1 will take effect from February 1, 2020 as a regulatory reform proposal to revise the Enforcement Decree of the Financial Investment Services and Capital Markets Act was approved at a Cabinet meeting on January 21, 2020.

The amendments are intended to better support the exercise of shareholder rights by institutional investors. The revised rules clarify the scope of shareholder activities to “exercise influence over the management” and apply differential reporting requirements according to shareholding purpose.

* Please refer to the attached PDF for details.