The 2022 Korean mandatory tender-offer proposal: price versus exit opportunity
Examine how a historical policy announcement designed purchase quantities and tenders by remaining shareholders.
Updated Oct 29, 2026
Design at the policy announcement
On 2022-12-21, the Financial Services Commission announced an investor-protection proposal for control transfers through share purchases. It targeted becoming the largest shareholder with at least 25% of a listed company and proposed purchases totaling at least 50%+1 share, including the controlling block.
The opportunity offered to remaining shareholders
The proposal offered remaining shareholders an opportunity to sell at the same price after the controlling block was secured, counting that block toward the total purchase quantity. It proposed treating purchases of the tendered quantity as completion when tenders fell short, so the target holding was not guaranteed in practice.
Price and participation quantity are different protections
An equal price aligns terms for shares purchased, but does not itself equalize sale proportions across all sellers including a prior block transaction. Compare total purchase size, treatment of prior transactions and the pool of tenders subject to allocation separately.
Announcement is not enactment
The event date is the historical proposal’s announcement, not an effective date. The source anticipated legislation and a transition period; it does not verify current bill wording or status, or a particular politician’s post.