Korea Passes Another Reform Bill in Push for Shareholder Value

South Korea’s parliament approved a long-debated legal revision requiring companies to cancel treasury shares, a key step in the government’s drive to improve corporate governance and boost stock market valuations.

The latest revision to the Commercial Act on treasury shares — a company’s own stock that has been repurchased but not canceled — eliminates a mechanism that governance experts say conglomerate owners have used to reinforce control with minimal direct holdings. The legislation passed Wednesday with 175 votes in favor out of 176 lawmakers present.