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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On September 12, Kim Byung-hwan, Chairman of the Financial Services Commission (FSC), addressed the controversy surrounding Doosan's merger and stated, "The current uniform formula for determining merger values has limitations in reflecting the true value of a company. Therefore, we will consider international standards and changes in market conditions to develop improved measures."
At a monthly briefing with financial reporters at the government complex in Seoul, Kim commented, "Recent issues of fairness have been raised, and there is ongoing debate about whether using a standard price for merger valuation is appropriate."
He explained that a new system has already been introduced for mergers between non-affiliated companies, which involves using an external valuation to determine a fair price. This approach might also be applied to mergers between affiliated companies, as part of the ongoing improvements.
Kim also acknowledged concerns that, without a set standard price for affiliated company mergers, major shareholders might set values arbitrarily. He said, "We initially decided to start with non-affiliated companies due to concerns about arbitrary value setting by major shareholders. However, recent observations suggest that having a single standard price might actually be a constraint in finding a fair value."
He added, "We should refer to advanced countries' practices, where there is no specific legislation or regulation for determining merger values. If the current method raises concerns in both market and global standards, it might be time to explore alternative possibilities."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
