South Korea will likely tighten regulations for reverse merger starting from next year, reported the Seoul Economic Daily.
Citing an unidentified insider at the Korea Stock Exchange for the information, the report stated that the new regulations are mainly with regard to transparency in management and company governance of a listed entity in reverse mergers.
He added that the regulator is considering this measure in order to protect individual investors.
More than ten companies were earlier reported to be listed via the form of reverse merger in South Korea last year.
A reverse merger is a method of making a private company public by acquisition of a public company in order to bypass the lengthy and complex process of listing.
(Source: Seoul Economic Daily)
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