Investor Presentation: S. Korea Strategy

Research evidence excerpt

Investor Presentation: S. Korea Strategy

FoundationM

Capital Market/Governance Reform Agenda

Reform Expected to Continue

Key Developments and Measures to Look for in 2026

Measures/Events Remarks Timeline

Lawmakers from the ruling party (DPK) proposed multiple amendment proposals to the CommercialCode, which stipulates the mandatorycancellation of treasury shares

within a diverserange of periods, but finallythe final bill was confirmed.The rulingparty's KOSPI 5000 Committeesubmitteda bill to amend the rules in the CommercialCode

Commercial Code 3.0 - Mandatory treasury cancellation measures relatedto treasury shares on November24, 2025.The bill was passed by the National Assembly on February25, 2026 with the key rules being treasury shares need to be Promulgated on March 5, 2026

cancelled within 1 year but for existing treasury shares an additional grace period of 6 months will be provided,and exceptionsare providedbut shareholder approvalis

needed. Passed by the National Assembly on February25, 2026.

The previousgovernmentannounced a proposal for amendmentsto the Capital Market Act on December2, 2024 with a focus on changing rules relatedto M&A and business

Capital market rule framework upgrade restructuring transactions to make it less unfavorablefor minority shareholders. The new administration is also wanting to make revisions to the Capital Market Act but we 1H26

need to wait for confirmationof a comprehensiveproposal or it could be a case of morepiecemealamendments.

On December 19, 2025, the FSC announced measures to revitalizethe KOSDAQ market,including: (1) Improvementof listing and delisting requirementsto enhance market