The South Korean National Assembly has approved a long-awaited amendment to the law requiring companies to cancel treasury shares, marking a key step in the government’s efforts to improve corporate governance and boost stock market valuations. The latest amendment to the Commercial Act regarding treasury shares—shares repurchased by a company but not yet canceled—eliminates a mechanism that governance experts believed had been used by conglomerate owners to consolidate control with minimal direct shareholding. The bill passed with 175 votes in favor out of the 176 lawmakers present. The provision on treasury shares is central to South Korean President Lee Jae-myung’s agenda and builds on earlier amendments to the Commercial Act, which expanded directors’ fiduciary duties and strengthened protections for minority shareholders. These reforms are part of a broader effort to align South Korea’s corporate framework with global standards. Lee Jae-myung has repeatedly linked the strengthening of shareholder protections to his goal of raising South Korea’s KOSPI index to 5,000 points. He stated that, following years of political and market volatility, such reforms are crucial for attracting global capital and restoring confidence.