I complained about how the Brazilian and Canadian stock markets are 93% owned by Brazilians and Canadians, but Koreans seem to hate their own stock market, having created a situation where foreigners own 44% of it—and way over 50% for some of the most valuable blue-chip companies.
This disequilibrium has led to a very strange alliance in Korea just in the last few days. Even though the IMF told the government eight weeks ago that Hostile M&A;was unlikely in Koreaa, in response to the Chey, Tae-Won problem at SK Corp., elderly Chaebol campaign-finance bigwigs have managed to persuade young Uri Party idealists they must leap to protect Korea from the illusory spectre of hostile foreign M&A;-- by passing legislation which protects the interest of the Chaebols. Somehow, the wealth-redistributing Uri Party Robin Hoods have been hoodwinked by the Chaebol Sheriff of Nottinghams! Who could have predicted that?
Supposedly to protect the economy and National Security, controlling shareholders will now be able to speed-launch dilutive rights offerings to boost friendly stakes, harming all outside shareholders. Soon, foreigners will have to register for approval of their voting intentions at Korea’s Ministry of Commerce. What comes next, tattooing numbers on us? Call me old-fashioned, but instead of foolishly fighting off the 44% foreign owners, another approach I’d suggest instead would be to get K
