{"id":1837,"date":"2026-08-11T08:53:15","date_gmt":"2026-08-11T08:53:15","guid":{"rendered":"https:\/\/atlaw.kr\/en-blog\/how-to-dispose-of-treasury-shares-in-south-koreathe-2026-commercial-act-amendment-bylaws-and-board-practice\/"},"modified":"2026-08-11T08:55:03","modified_gmt":"2026-08-11T08:55:03","slug":"treasury-share-disposal-south-korea","status":"publish","type":"post","link":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/","title":{"rendered":"How to Dispose of Treasury Shares in South Korea"},"content":{"rendered":"<p><!-- ATLAS_HREFLANG_START -->\n<link rel=\"alternate\" hreflang=\"ko\" href=\"https:\/\/atlaw.kr\/kr-blog\/treasury-stock-disposal-method-kr\/\" \/>\n<link rel=\"alternate\" hreflang=\"en\" href=\"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/\" \/>\n<link rel=\"alternate\" hreflang=\"x-default\" href=\"https:\/\/atlaw.kr\/kr-blog\/treasury-stock-disposal-method-kr\/\" \/>\n<!-- ATLAS_HREFLANG_END --><\/p>\n<p><!-- ATLAS_SEO_BLOCK_START --><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Article\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/#article\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/#webpage\"},\"headline\":\"How to Dispose of Treasury Shares in South Korea Under the 2026 Commercial Act Amendment\",\"description\":\"Effective March 6, 2026, South Korea requires companies to cancel treasury shares within one year of acquisition and to dispose of them pro rata to all shareholders. This guide explains the four exceptions permitting disposal to third parties and when a bylaws amendment is mandatory.\",\"datePublished\":\"2026-08-11T09:00:00+09:00\",\"dateModified\":\"2026-08-11T09:00:00+09:00\",\"inLanguage\":\"en-US\",\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/atlaw.kr\/taejin-kim\/#person\",\"name\":\"Taejin Kim\",\"alternateName\":\"\uae40\ud0dc\uc9c4\",\"jobTitle\":\"Managing Partner\",\"worksFor\":{\"@id\":\"https:\/\/atlaw.kr\/#legalservice\"}},\"publisher\":{\"@type\":\"LegalService\",\"@id\":\"https:\/\/atlaw.kr\/#legalservice\",\"name\":\"Atlas Legal\",\"url\":\"https:\/\/atlaw.kr\"},\"about\":[\"Korean Commercial Act Article 341-4 mandatory treasury share cancellation\",\"Korean Commercial Act Article 342 disposal of treasury shares\",\"Pro rata equal-terms disposal to shareholders in South Korea\",\"Treasury share retention and disposition plan approved by shareholders meeting\",\"Bylaws amendment by special resolution under Article 434\"]}<\/script><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/#faqpage\",\"inLanguage\":\"en-US\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Does the treasury share cancellation duty apply to private companies in South Korea?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. Article 341-4 of the Korean Commercial Act is a general provision governing stock companies, not a special rule limited to listed companies. Private companies and venture companies must also cancel treasury shares within one year of acquisition unless a retention and disposition plan is approved by the shareholders meeting.\"}},{\"@type\":\"Question\",\"name\":\"Can a Korean company still sell treasury shares to a friendly third party?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Not as a matter of course. Article 342(1) requires the company to let each shareholder acquire the shares on equal terms in proportion to shareholding. Disposal to a person other than a shareholder is permitted only where one of the exceptions in Article 341-4(2), items 2 through 5, applies.\"}},{\"@type\":\"Question\",\"name\":\"When is a bylaws amendment mandatory for treasury share disposal in South Korea?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"When the company relies on the business purpose exception. Article 341-4(2)(5) covers cases necessary to achieve a corporate business purpose such as adopting new technology or improving the financial structure, but only where the ground is written into the bylaws by a special resolution under Article 434. Without that provision, the exception is unavailable.\"}},{\"@type\":\"Question\",\"name\":\"Is one shareholder approval of the retention and disposition plan enough?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Article 341-4(3) requires the treasury share retention and disposition plan to be approved at the shareholders meeting every year. The plan must state the purpose, the class and number of shares, the acquisition method, the expected retention period and disposal timing, and must be signed or sealed by all directors.\"}},{\"@type\":\"Question\",\"name\":\"What changes because new share issuance rules now apply to treasury share disposal?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Article 342(4) applies Articles 417 through 419, 421, 422, 423(2) and (3), 424, 424-2, and 427 through 432 to treasury share disposal to the extent not inconsistent with its nature. The injunction right, the liability of a person who subscribes at a grossly unfair price, and the invalidation action now extend to disposals, resolving a long-running debate by legislation.\"}},{\"@type\":\"Question\",\"name\":\"By when must treasury shares already held be dealt with?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The supplementary provisions grant a grace period for shares held when the amendment took effect, requiring cancellation within one year from the date six months after the effective date. Foreign-invested companies in South Korea should decide during that window whether to cancel or to seek annual shareholder approval to retain.\"}}]}<\/script><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":[\"LegalService\",\"LocalBusiness\"],\"@id\":\"https:\/\/atlaw.kr\/#legalservice\",\"name\":\"Atlas Legal\",\"alternateName\":[\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"Atlas Law Firm\"],\"url\":\"https:\/\/atlaw.kr\/en\/home-en\/\",\"telephone\":\"+82-32-864-8300\",\"email\":\"info@atlaw.kr\",\"priceRange\":\"$$$\",\"address\":{\"@type\":\"PostalAddress\",\"streetAddress\":\"B-2901, 323 Incheon Tower-daero\",\"addressLocality\":\"Yeonsu-gu, Incheon\",\"addressRegion\":\"Incheon Metropolitan City\",\"postalCode\":\"22007\",\"addressCountry\":\"KR\"},\"geo\":{\"@type\":\"GeoCoordinates\",\"latitude\":37.399438,\"longitude\":126.629812},\"openingHoursSpecification\":[{\"@type\":\"OpeningHoursSpecification\",\"dayOfWeek\":[\"Monday\",\"Tuesday\",\"Wednesday\",\"Thursday\",\"Friday\"],\"opens\":\"09:00\",\"closes\":\"18:00\"}],\"areaServed\":[{\"@type\":\"Country\",\"name\":\"South Korea\"},{\"@type\":\"Place\",\"name\":\"Songdo International Business District\"},{\"@type\":\"Place\",\"name\":\"Cheongna International City\"},{\"@type\":\"Place\",\"name\":\"Yeongjong International City\"},{\"@type\":\"Place\",\"name\":\"Incheon\"},{\"@type\":\"Place\",\"name\":\"Seoul Metropolitan Area\"},{\"@type\":\"Place\",\"name\":\"Incheon Free Economic Zone (IFEZ)\"}],\"knowsAbout\":[\"Treasury Share Regulation in South Korea\",\"Korean Commercial Act Amendments\",\"Corporate Governance in South Korea\",\"Shareholders Agreements in South Korea\",\"Bylaws Amendment Procedure in South Korea\",\"Board and Shareholders Meeting Counseling in South Korea\",\"Incheon Free Economic Zone (IFEZ) Legal Services\"],\"serviceType\":[\"Corporate Counseling\",\"Corporate Governance Advisory\",\"Shareholders Agreement Negotiation\",\"Board and Shareholders Meeting Support\",\"Foreign Direct Investment Legal Services\"]}<\/script><br \/>\n<!-- ATLAS_SEO_BLOCK_END --><\/p>\n<style>@import url('https:\/\/cdn.jsdelivr.net\/gh\/orioncactus\/pretendard@v1.3.9\/dist\/web\/static\/pretendard.css'); \/* \u2500\u2500 Kadence theme content width override \u2500\u2500 *\/ :root { --global-content-narrow-width: 1290px !important; } .entry-content-wrap { max-width: 1290px !important; } *, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; } :root { --navy: #0a2540; --navy2: #1a3353; --wine: #722f37; --text: #1a1f36; --muted: #697386; --rule: #e3e8ee; } body { font-family: 'Pretendard', -apple-system, BlinkMacSystemFont, 'Apple SD Gothic Neo', sans-serif; background: #fff; color: var(--text); font-size: 18px; line-height: 1.82; -webkit-font-smoothing: antialiased; } .entry-content { margin-top: 0 !important; } \/* \u2500\u2500 Hero \u2500\u2500 *\/ .hero { max-width: 1000px; margin: 0 auto; padding: 72px 48px 48px; text-align: center; } .category-tag { font-size: 11px; font-weight: 700; letter-spacing: 1.5px; text-transform: uppercase; color: var(--wine); display: block; margin-bottom: 20px; } .hero h1 { font-size: 44px; font-weight: 700; line-height: 1.22; color: var(--navy); margin-bottom: 28px; word-break: keep-all; } .hero-title { font-size: 44px; font-weight: 700; line-height: 1.22; color: var(--navy); margin-bottom: 28px; word-break: keep-all; } .hero-meta { display: flex; align-items: center; justify-content: center; gap: 12px; padding-bottom: 40px; border-bottom: 1px solid var(--rule); } .hero-info { font-size: 13.5px; color: var(--text); line-height: 1.4; } .hero-info strong { color: var(--text); font-weight: 500; } \/* \u2500\u2500 Direct answer box \u2500\u2500 *\/ .direct-answer { background: #f6f9fc; border-left: 4px solid var(--navy); border-radius: 0; padding: 20px 24px; margin: 32px 0 40px; font-size: 17px; line-height: 1.75; color: var(--text); } \/* \u2500\u2500 Content \u2500\u2500 *\/ .content { max-width: 1000px; margin: 0 auto; padding: 52px 48px 100px; } .toc-nav { margin-bottom: 60px; border: 1px solid #d0d5dd; border-radius: 6px; padding: 28px 32px; } .toc-label { font-size: 20px; font-weight: 700; color: var(--navy); margin-bottom: 14px; } .toc-nav ol { list-style: none; padding-left: 0; } .toc-nav ol li { display: flex; gap: 14px; align-items: baseline; padding: 6px 0; font-size: 17px; } .toc-nav ol li::before { content: none; } .toc-nav ol li a { color: var(--text); text-decoration: none; font-weight: 400; } .toc-nav ol li a:hover { color: var(--wine); } .lead-text { font-size: 20px; font-weight: 400; color: var(--text); line-height: 1.8; margin-bottom: 24px; } .summary-text { font-size: 18px; color: var(--text); line-height: 1.8; margin-bottom: 20px; } .context-text { font-size: 17px; color: var(--text); line-height: 1.8; margin-bottom: 52px; } h2 { font-size: 30px; font-weight: 700; color: var(--wine); margin: 68px 0 16px; word-break: keep-all; } h3 { font-size: 17px; font-weight: 700; color: var(--wine); margin: 38px 0 10px; } p { font-size: 18px; color: var(--text); line-height: 1.82; margin-bottom: 18px; } table { width: 100%; border-collapse: collapse; margin: 24px 0; font-size: 14px; } thead tr { background: #fff; } th { color: var(--navy); font-weight: 600; padding: 11px 16px; text-align: left; font-size: 16px; border-bottom: 2px solid var(--navy); } td { padding: 12px 16px; border-bottom: 1px solid var(--rule); color: var(--text); font-size: 16px; } tbody tr:hover { background: #f6f9fc; } ul, ol:not(.toc-nav ol) { padding-left: 20px; margin-bottom: 16px; } li { font-size: 18px; line-height: 1.78; margin-bottom: 6px; color: var(--text); } .formula { display: flex; align-items: center; gap: 8px; background: #f6f9fc; border: 1px solid var(--rule); border-radius: 8px; padding: 28px 24px; margin: 32px 0; flex-wrap: wrap; justify-content: center; } .f-item { text-align: center; padding: 12px 18px; background: #fff; border: 1px solid var(--rule); border-radius: 5px; } .f-result { background: #fff; border: 2px solid var(--navy); } .f-num { font-size: 22px; font-weight: 700; color: var(--navy); line-height: 1.2; } .f-result .f-num { color: var(--wine); } .f-label { font-size: 11px; color: var(--text); margin-top: 4px; } .f-op { font-size: 20px; color: var(--text); padding: 0 2px; font-weight: 300; } .faq-item { border-top: 1px solid var(--rule); padding: 22px 0; } .faq-item:last-of-type { border-bottom: 1px solid var(--rule); } .faq-q { font-size: 17px; font-weight: 600; color: var(--navy); margin-bottom: 8px !important; } .faq-item p:not(.faq-q) { font-size: 17px; color: var(--text); margin: 0; line-height: 1.75; } p.closing { font-size: 15.5px; color: var(--text); margin: 40px 0 0; padding-top: 32px; border-top: 1px solid var(--rule); } .author-box { display: flex; align-items: center; gap: 14px; padding-top: 40px; margin-top: 40px; border-top: 1px solid var(--rule); } .author-avatar { width: 56px; height: 56px; border-radius: 50%; object-fit: cover; flex-shrink: 0; align-self: flex-start; } .author-text { flex: 1; } .author-name { font-size: 18px; font-weight: 600; color: var(--navy); } .author-meta { font-size: 13px; color: var(--text); margin-top: 2px; } .author-link { display: inline-block; margin-top: 8px; font-size: 15px; font-weight: 600; color: var(--wine); text-decoration: none; } .author-link:hover { text-decoration: underline; } .author-section-label { font-size: 15px; font-weight: 700; letter-spacing: 1px; text-transform: uppercase; color: var(--muted); margin-bottom: 8px; } .author-detail { font-size: 16px; color: var(--text); line-height: 1.7; margin-bottom: 1px; } @media (max-width: 640px) { body { font-size: 15px; } p { font-size: 15px; } li { font-size: 15px; } .hero { padding: 32px 14px 24px; } .hero h1 { font-size: 22px; } .hero-title { font-size: 22px; } .hero-info { font-size: 12px; } .content { padding: 28px 0 60px; } .toc-nav { margin-left: -14px; margin-right: -14px; border-radius: 0; border-left: none; border-right: none; padding: 12px 4px; margin-bottom: 28px; } .toc-label { font-size: 16px; } .toc-nav ol li { font-size: 14px; padding: 3px 0; } h2 { font-size: 20px; margin: 44px 0 10px; } h3 { font-size: 15px; margin: 24px 0 8px; } .lead-text { font-size: 16px; } .summary-text { font-size: 15px; } .context-text { font-size: 14px; } .formula { flex-direction: column; padding: 16px 12px; } .f-num { font-size: 18px; } th { font-size: 13px; padding: 8px 10px; } td { font-size: 13px; padding: 8px 10px; } .faq-q { font-size: 14px; } .faq-item p:not(.faq-q) { font-size: 14px; } .author-box { display: block; overflow: hidden; } .author-avatar { float: left; width: 36px; height: 36px; margin-right: 10px; border-radius: 50%; } .author-section-label { display: inline; font-size: 11px; letter-spacing: 0; margin: 0 3px 0 0; } .author-name { display: inline; font-size: 14px; } .author-detail { clear: both; font-size: 13px; line-height: 1.55; margin-top: 8px; margin-bottom: 1px; } .author-detail ~ .author-detail { clear: none; margin-top: 2px; } .author-link { clear: both; display: block; font-size: 13px; margin-top: 8px; } p.closing { font-size: 14px; } }<\/style>\n<div class=\"hero\">\n  <span class=\"category-tag\">Corporate Counseling<\/span><\/p>\n<div class=\"hero-title\">How to Dispose of Treasury Shares in South Korea<br \/>The 2026 Commercial Act Amendment, Bylaws, and Board Practice<\/div>\n<div class=\"hero-meta\">\n<div class=\"hero-info\">\n      <strong>Taejin Kim<\/strong> \u00b7 Managing Partner, Atlas Legal<br \/>\n      Korean Commercial Act Art. 341-4 &nbsp;\u00b7&nbsp; Art. 342 &nbsp;\u00b7&nbsp; Act No. 21448 (promulgated and effective March 6, 2026)\n    <\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"content\">\n<div class=\"direct-answer\">\n    <strong>Direct answer:<\/strong> Under the amendment to the Korean Commercial Act effective March 6, 2026, a company must cancel treasury shares within one year of acquisition (Article 341-4(1)), and any disposal must let each shareholder acquire on equal terms in proportion to shareholding (Article 342(1)). Disposal to a third party is allowed only under four statutory exceptions, and the business purpose exception requires the ground to be written into the bylaws by special resolution.\n  <\/div>\n<div class=\"toc-nav\">\n<p class=\"toc-label\">Contents<\/p>\n<ol>\n<li><a href=\"#sec-1\">1. What changed for treasury share disposal in South Korea in 2026?<\/a><\/li>\n<li><a href=\"#sec-2\">2. Why must treasury shares be cancelled within one year?<\/a><\/li>\n<li><a href=\"#sec-3\">3. What does pro rata disposal on equal terms actually require?<\/a><\/li>\n<li><a href=\"#sec-4\">4. Which exceptions permit disposal to a third party?<\/a><\/li>\n<li><a href=\"#sec-5\">5. When is a bylaws amendment mandatory?<\/a><\/li>\n<li><a href=\"#sec-6\">6. How is the retention and disposition plan prepared and approved?<\/a><\/li>\n<li><a href=\"#sec-7\">7. Who decides \u2014 the board or the shareholders meeting?<\/a><\/li>\n<li><a href=\"#sec-8\">8. What follows from applying new share issuance rules to disposal?<\/a><\/li>\n<li><a href=\"#sec-9\">9. What should foreign-invested companies in the IFEZ do now?<\/a><\/li>\n<li><a href=\"#sec-faq\">10. Frequently asked questions<\/a><\/li>\n<\/ol><\/div>\n<p class=\"lead-text\">For decades, treasury shares were the quiet reserve of Korean corporate practice. A company bought back its own stock, held it indefinitely, and released it to a friendly party when control was contested or a deal needed currency. As of March 6, 2026, that reserve no longer exists as a matter of law.<\/p>\n<p class=\"context-text\">The third amendment to the Korean Commercial Act (Act No. 21448) passed the National Assembly on February 25, 2026 and was promulgated and took effect on March 6, 2026. Two rules define it. First, treasury shares acquired by a company must be cancelled within one year of acquisition. Second, if the company wishes to retain or dispose of them instead, it needs shareholder approval, and any disposal must be offered to all shareholders on equal terms in proportion to their holdings. For foreign investors and joint venture partners in South Korea, this rewrites assumptions that were built into existing shareholders agreements. This article focuses on the disposal mechanics and on the bylaws work that must precede them.<\/p>\n<p><\/p>\n<h2 id=\"sec-1\">1. What changed for treasury share disposal in South Korea in 2026?<\/h2>\n<p class=\"summary-text\">The default changed. The previous Article 342 simply directed the board to decide the class and number of shares, the disposal price and payment date, and the counterparty and method. It said nothing about who should receive the shares. The amended provision adds a governing principle: the company &#8220;shall have each shareholder acquire the shares on equal terms in proportion to the number of shares held&#8221; (Article 342(1)).<\/p>\n<p>In other words, disposal of treasury shares is now a <strong>rights offering by default<\/strong>, and a placement to a third party is the exception. The architecture of new share issuance under Korean law, where shareholders hold preemptive rights and third-party allocation requires both a bylaws basis and a business purpose, has been transplanted into treasury share disposal.<\/p>\n<table>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>Before<\/th>\n<th>From March 6, 2026<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Retention<\/td>\n<td>Indefinite<\/td>\n<td>Cancellation within one year of acquisition (Art. 341-4(1))<\/td>\n<\/tr>\n<tr>\n<td>Counterparty<\/td>\n<td>Board discretion<\/td>\n<td>Shareholders, pro rata, on equal terms (Art. 342(1))<\/td>\n<\/tr>\n<tr>\n<td>Third-party disposal<\/td>\n<td>Board resolution sufficient<\/td>\n<td>Statutory exception plus shareholder-approved plan<\/td>\n<\/tr>\n<tr>\n<td>Procedure<\/td>\n<td>No statutory cross-application<\/td>\n<td>New share issuance rules apply (Art. 342(4))<\/td>\n<\/tr>\n<tr>\n<td>Bylaws<\/td>\n<td>Effectively unnecessary<\/td>\n<td>Required for the business purpose exception<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/p>\n<h2 id=\"sec-2\">2. Why must treasury shares be cancelled within one year?<\/h2>\n<p class=\"summary-text\">Article 341-4(1) provides that where a company has acquired treasury shares, it &#8220;shall cancel them within one year from the date of acquisition.&#8221; The policy concern is straightforward. Treasury shares carry no voting rights while the company holds them, but those rights revive the moment the shares reach a third party. A controlling shareholder could therefore manufacture friendly voting power using corporate funds rather than personal capital.<\/p>\n<p>This is a general provision of Korean company law, not a listed-company special rule. <strong>Private companies and venture companies are equally bound.<\/strong> Mid-sized Korean manufacturers that accumulated treasury shares for succession planning or shareholder buyouts are often the most affected.<\/p>\n<h3>The workarounds closed at the same time<\/h3>\n<p>Article 341-3 should be read alongside the disposal rules. The amendment states expressly that treasury shares carry neither voting rights nor economic rights such as dividends and preemptive rights, and it prohibits <strong>pledging treasury shares<\/strong> and <strong>issuing bonds exchangeable or redeemable into treasury shares<\/strong>. Allocating new shares to treasury shares in a merger or split, or transferring them as merger consideration, is likewise barred.<\/p>\n<p>Exchangeable bonds backed by treasury shares and treasury share pledges were long used to achieve the economic effect of a disposal without going through a disposal. Those routes are now closed. If a Korean company wants to use its treasury shares, it must go through Article 342 directly, which is precisely why the disposal mechanics now matter.<\/p>\n<p><\/p>\n<h2 id=\"sec-3\">3. What does pro rata disposal on equal terms actually require?<\/h2>\n<p class=\"summary-text\">The equal-terms principle in Article 342(1) means every shareholder must be given the opportunity to buy at the same price and on the same conditions, in proportion to that shareholder&#8217;s stake. A quiet off-market sale to one shareholder is no longer the ordinary method of disposal.<\/p>\n<p>In practice the company follows a procedure that closely tracks a rights offering: fixing and publishing a record date, notifying shareholders of their allocation and the subscription deadline, and running subscription and payment. Article 342(4) applies Articles 417 through 419, so these procedural provisions operate directly.<\/p>\n<p>One point is easy to miss. Pro rata equal-terms disposal is <strong>itself an exception under Article 341-4(2)(1)<\/strong>. Even where the company sells only to existing shareholders, it must still prepare a treasury share retention and disposition plan and obtain shareholder approval to be released from the cancellation duty. Assuming that an offer to all shareholders dispenses with the plan is a costly mistake.<\/p>\n<p><\/p>\n<h2 id=\"sec-4\">4. Which exceptions permit disposal to a third party?<\/h2>\n<p class=\"summary-text\">Article 342(2) permits a company to dispose of treasury shares to a person other than a shareholder only where one of items 2 through 5 of Article 341-4(2) applies. Item 1 is a shareholder allocation by nature, so four exceptions support third-party disposal.<\/p>\n<table>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>Ground<\/th>\n<th>Third-party disposal<\/th>\n<th>Bylaws provision<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Pro rata disposal to all shareholders on equal terms<\/td>\n<td>Not applicable<\/td>\n<td>Not required<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Employee compensation, including stock options under Art. 340-2 or Art. 542-3<\/td>\n<td>Permitted<\/td>\n<td>Separate basis for the option plan<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Employee stock ownership plans under the Framework Act on Labor Welfare<\/td>\n<td>Permitted<\/td>\n<td>Not required<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>Statutory use in share exchange, share transfer, or merger (Arts. 360-2(2), 360-15(2), 523(3) and others)<\/td>\n<td>Permitted<\/td>\n<td>Not required<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>Business purpose such as adopting new technology or improving the financial structure<\/td>\n<td>Permitted<\/td>\n<td><strong>Mandatory<\/strong> \u2014 special resolution under Art. 434<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Item 5 is where most cross-border transactions land. Strategic alliances, financial restructuring, and equity swaps tied to technology partnerships all fall here, and the exception is unavailable unless the ground already appears in the bylaws.<\/p>\n<p>The list is <strong>exhaustive<\/strong>. A disposal that benefits the company but does not fit an enumerated ground is not permitted. The Ministry of Justice has confirmed, for example, that contributing treasury shares to an in-house employee welfare fund does not fall within Article 341-4(2), so an arrangement that ultimately benefits employees is not automatically covered by items 2 or 3.<\/p>\n<p><\/p>\n<h2 id=\"sec-5\">5. When is a bylaws amendment mandatory?<\/h2>\n<p class=\"summary-text\">A bylaws amendment is indispensable where the company intends to retain or dispose of treasury shares for a <strong>business purpose<\/strong>. Article 341-4(2)(5) covers a case &#8220;necessary to achieve a business purpose of the company, such as the adoption of new technology or the improvement of the financial structure, where the ground is provided in the bylaws by a resolution of the shareholders meeting under Article 434.&#8221; Article 434 sets the special resolution threshold: two thirds of the voting rights present and one third of total issued shares.<\/p>\n<p>Beyond that, the decision-making architecture itself can be designed in the bylaws. Article 342(3) directs the board to decide the class and number of shares, the price and payment date, and the counterparty and method, <strong>to the extent the bylaws do not provide otherwise<\/strong>, and adds that this does not apply where another provision of the Act governs or where the bylaws assign the decision to the shareholders meeting.<\/p>\n<table>\n<thead>\n<tr>\n<th>Objective<\/th>\n<th>Bylaws amendment<\/th>\n<th>Resolution<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Retain or dispose for a business purpose (item 5)<\/td>\n<td>Mandatory \u2014 state the ground<\/td>\n<td>Special resolution (Art. 434)<\/td>\n<\/tr>\n<tr>\n<td>Fix the counterparty or method in advance<\/td>\n<td>Optional \u2014 limits board discretion<\/td>\n<td>Special resolution<\/td>\n<\/tr>\n<tr>\n<td>Reserve the decision to the shareholders meeting<\/td>\n<td>Optional \u2014 minority shareholder safeguard<\/td>\n<td>Special resolution<\/td>\n<\/tr>\n<tr>\n<td>Employee compensation or employee stock ownership<\/td>\n<td>Align the underlying plan provisions<\/td>\n<td>Special resolution<\/td>\n<\/tr>\n<tr>\n<td>Merger, share exchange, or share transfer<\/td>\n<td>Generally not required<\/td>\n<td>Follows the reorganization procedure<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Copying the statutory language verbatim into the bylaws is not advisable. A catch-all clause reciting &#8220;a business purpose of the company&#8221; invites a dispute over whether the ground existed when the disposal is later challenged. Specifying concrete grounds that match the company&#8217;s actual business, such as technology adoption, strategic alliance, or financial restructuring, is the safer course, and drafting that language carefully is usually the most time-consuming part of the engagement.<\/p>\n<p><\/p>\n<h2 id=\"sec-6\">6. How is the retention and disposition plan prepared and approved?<\/h2>\n<p class=\"summary-text\">To rely on an exception, the company must prepare a treasury share retention and disposition plan and obtain the approval of the shareholders meeting (Article 341-4(2)), and must obtain that approval <strong>every year<\/strong> (Article 341-4(3)). It is a standing annual agenda item, not a one-time filing.<\/p>\n<p>The plan must state the following and be signed or sealed by <strong>all directors<\/strong> (Article 341-4(4)).<\/p>\n<ul>\n<li>The purpose of retaining or disposing of the treasury shares<\/li>\n<li>The class and number of treasury shares concerned and the method of acquisition<\/li>\n<li>As of the start of retention and the expected disposal date: the class and number of shares and acquisition method, the class and number of shares other than treasury shares within total issued shares, and the change in the ratio of treasury shares to total issued shares<\/li>\n<li>The expected retention period<\/li>\n<li>The expected timing of disposal<\/li>\n<\/ul>\n<p>The signature requirement is not a formality. It allocates individual responsibility for the contents to each director, so the board record should document why the purpose is legitimate and how the shareholding ratios will move. Preparing the board minutes and the draft plan as a single package is the practical response.<\/p>\n<p><\/p>\n<h2 id=\"sec-7\">7. Who decides \u2014 the board or the shareholders meeting?<\/h2>\n<p class=\"summary-text\">Both, in sequence. The shareholders meeting decides whether the company may retain and dispose at all, by approving the plan. The board decides the specific terms within the approved plan.<\/p>\n<ul>\n<li>Board \u2014 prepares the retention and disposition plan, signed by all directors<\/li>\n<li>Shareholders meeting \u2014 approves the plan; where the business purpose exception is used, the bylaws provision must already be in place by special resolution<\/li>\n<li>Board \u2014 fixes the class, number, price, payment date, counterparty, and method within the approved plan<\/li>\n<li>Execution \u2014 follows the applied new share issuance procedure of publication, notice, subscription, and payment<\/li>\n<li>Annual general meeting \u2014 renews approval of the plan each year<\/li>\n<\/ul>\n<p><\/p>\n<h2 id=\"sec-8\">8. What follows from applying new share issuance rules to disposal?<\/h2>\n<p class=\"summary-text\">Article 342(4) applies Articles 417 through 419, 421, 422, 423(2) and (3), 424, 424-2, and 427 through 432 to treasury share disposal <strong>to the extent not inconsistent with its nature<\/strong>. Korean lower courts had long divided over whether new share issuance rules could be applied by analogy to treasury share disposal. The legislature has now settled the question.<\/p>\n<ul>\n<li><strong>Procedure<\/strong> (Arts. 417\u2013419, 421) \u2014 record date designation and publication, notice to subscribe, and payment mechanics now govern disposal.<\/li>\n<li><strong>In-kind contribution review<\/strong> (Art. 422) \u2014 inspection or appraisal becomes an issue where treasury shares are disposed of against non-cash consideration.<\/li>\n<li><strong>Injunction right<\/strong> (Art. 424) \u2014 a shareholder facing prejudice from a disposal that violates law or the bylaws, or that is grossly unfair, may demand that the company refrain from it.<\/li>\n<li><strong>Liability for a grossly unfair price<\/strong> (Art. 424-2) \u2014 a person who acquires treasury shares at a grossly unfair price in collusion with a director owes the company the difference from the fair price.<\/li>\n<li><strong>Invalidation action<\/strong> (Arts. 427\u2013432) \u2014 challenges to a disposal are channelled into a statutory action with a fixed filing period and defined judgment effects.<\/li>\n<\/ul>\n<p>For the company, a procedural defect now converts directly into litigation risk. For minority shareholders, the remedies are clearer than before. The qualifier &#8220;to the extent not inconsistent with its nature&#8221; means the reach of individual provisions will be worked out case by case, and no judicial guidance exists yet given how recently the amendment took effect.<\/p>\n<p><\/p>\n<h2 id=\"sec-9\">9. What should foreign-invested companies in the IFEZ do now?<\/h2>\n<p class=\"summary-text\">The supplementary provisions grant a grace period for treasury shares already held when the amendment took effect, requiring cancellation within one year from the date six months after the effective date. Shares held indirectly by a trustee under a trust arrangement are also covered by the transitional rules.<\/p>\n<p>Within that window, a company must decide whether to cancel or to seek annual shareholder approval to retain, and if the latter, prepare the general meeting agenda and the bylaws amendment together. Because the bylaws amendment requires a special resolution, the shareholding structure often determines whether the timetable is realistic at all.<\/p>\n<p>A frequently overlooked case is a <strong>disposal already resolved and disclosed but not yet completed<\/strong>. Even where the company resolved on a disposal and made the disclosure before the effective date, completing it afterward requires the new procedure: confirming that a statutory exception applies and obtaining shareholder approval of the retention and disposition plan. Relying on the earlier resolution alone is not safe.<\/p>\n<h3>Shareholders agreements need to be reopened<\/h3>\n<p>Joint ventures and investee companies in South Korea commonly carry treasury share provisions in their shareholders agreements. Clauses that collide with the amendment include the following.<\/p>\n<ul>\n<li>An undertaking that the company will buy back shares and transfer them to a designated shareholder \u2014 test against the equal-terms principle and the exception list.<\/li>\n<li>Use of treasury shares as collateral or as exchange consideration \u2014 now prohibited, so the structure must be redesigned.<\/li>\n<li>Anti-dilution and ratio maintenance clauses \u2014 cancellation reduces total issued shares, changing the arithmetic they assume.<\/li>\n<li>Pre-agreement on special resolution items \u2014 plan approval and bylaws amendment are new agenda items that the voting arrangements must cover.<\/li>\n<\/ul>\n<p>Atlas Legal has recently advised companies preparing treasury share disposals across the full sequence: designing the bylaws amendment, renegotiating and revising shareholders agreements, preparing the retention and disposition plan and the supporting board minutes, and running the general meeting agenda and resolution process. Because the amendment is so recent, this work has meant reading the statute closely and building the procedure without the benefit of precedent. Companies in the Incheon Free Economic Zone (IFEZ), covering Songdo International Business District, Cheongna International City, and Yeongjong International City, should start with the threshold question of whether cancellation or retention serves the shareholder base better.<\/p>\n<p><\/p>\n<h2 id=\"sec-faq\">10. Frequently asked questions<\/h2>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Does the treasury share cancellation duty apply to private companies in South Korea?<\/p>\n<p>A. Yes. Article 341-4 of the Korean Commercial Act is a general provision governing stock companies, not a special rule limited to listed companies. Private companies and venture companies must also cancel treasury shares within one year of acquisition unless a retention and disposition plan is approved by the shareholders meeting.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Can a Korean company still sell treasury shares to a friendly third party?<\/p>\n<p>A. Not as a matter of course. Article 342(1) requires the company to let each shareholder acquire the shares on equal terms in proportion to shareholding. Disposal to a person other than a shareholder is permitted only where one of the exceptions in Article 341-4(2), items 2 through 5, applies.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. When is a bylaws amendment mandatory for treasury share disposal in South Korea?<\/p>\n<p>A. When the company relies on the business purpose exception. Article 341-4(2)(5) covers cases necessary to achieve a corporate business purpose such as adopting new technology or improving the financial structure, but only where the ground is written into the bylaws by a special resolution under Article 434. Without that provision, the exception is unavailable.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Is one shareholder approval of the retention and disposition plan enough?<\/p>\n<p>A. No. Article 341-4(3) requires the treasury share retention and disposition plan to be approved at the shareholders meeting every year. The plan must state the purpose, the class and number of shares, the acquisition method, the expected retention period and disposal timing, and must be signed or sealed by all directors.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. What changes because new share issuance rules now apply to treasury share disposal?<\/p>\n<p>A. Article 342(4) applies Articles 417 through 419, 421, 422, 423(2) and (3), 424, 424-2, and 427 through 432 to treasury share disposal to the extent not inconsistent with its nature. The injunction right, the liability of a person who subscribes at a grossly unfair price, and the invalidation action now extend to disposals, resolving a long-running debate by legislation.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. By when must treasury shares already held be dealt with?<\/p>\n<p>A. The supplementary provisions grant a grace period for shares held when the amendment took effect, requiring cancellation within one year from the date six months after the effective date. Foreign-invested companies in South Korea should decide during that window whether to cancel or to seek annual shareholder approval to retain.<\/p>\n<\/div>\n<p class=\"closing\">This article reflects the Korean Commercial Act as amended and effective March 6, 2026. Outcomes depend on each company&#8217;s shareholding structure, bylaws, and shareholders agreement. For assistance with bylaws amendments, treasury share retention and disposition plans, or board and shareholders meeting procedure, please contact Atlas Legal in Songdo, Incheon.<\/p>\n<div class=\"author-box\">\n    <img decoding=\"async\" class=\"author-avatar\" src=\"https:\/\/atlaw.kr\/wp-content\/uploads\/2022\/12\/\uae40\ud0dc\uc9c4-1.png\" alt=\"Taejin Kim, Managing Partner \u2014 Atlas Legal\"><\/p>\n<div class=\"author-text\">\n<div class=\"author-section-label\">About the Author<\/div>\n<div class=\"author-name\">Taejin Kim | Managing Partner<\/div>\n<div class=\"author-detail\">Corporate Counseling, Corporate Disputes, White-Collar Crime<\/div>\n<div class=\"author-detail\">Former Public Prosecutor | Judicial Research and Training Institute, 33rd Class<\/div>\n<div class=\"author-detail\">Korea University LL.B. &amp; LL.M. (Criminal Law), University of California, Davis LL.M.<\/div>\n<div class=\"author-detail\">Atlas Legal | Incheon Songdo, South Korea<\/div>\n<p>      <a class=\"author-link\" href=\"https:\/\/atlaw.kr\" target=\"_blank\" rel=\"noopener noreferrer\">Visit Atlas Legal Homepage \u2192<\/a>\n    <\/div>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[218],"tags":[894,896,895,441,38],"class_list":["post-1837","post","type-post","status-publish","format-standard","hentry","category-corporate-counseling","tag-treasury-shares","tag-bylaws-amendment","tag-corporate-governance-south-korea","tag-korean-commercial-act","tag-shareholders-agreement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Treasury Share Disposal in South Korea 2026 | Atlas Legal<\/title>\n<meta name=\"description\" content=\"Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/\" \/>\n<meta property=\"og:locale\" content=\"ko_KR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury Share Disposal in South Korea 2026 | Atlas Legal\" \/>\n<meta property=\"og:description\" content=\"Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/\" \/>\n<meta property=\"og:site_name\" content=\"Atlas Legal Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-11T08:53:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-11T08:55:03+00:00\" \/>\n<meta name=\"author\" content=\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\uae00\uc4f4\uc774\" \/>\n\t<meta name=\"twitter:data1\" content=\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\" \/>\n\t<meta name=\"twitter:label2\" content=\"\uc608\uc0c1 \ub418\ub294 \ud310\ub3c5 \uc2dc\uac04\" \/>\n\t<meta name=\"twitter:data2\" content=\"14\ubd84\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/\"},\"author\":{\"name\":\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/person\\\/184bcdecc06f89fd6c36b29781165b55\"},\"headline\":\"How to Dispose of Treasury Shares in South Korea\",\"datePublished\":\"2026-08-11T08:53:15+00:00\",\"dateModified\":\"2026-08-11T08:55:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/\"},\"wordCount\":2898,\"publisher\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#organization\"},\"keywords\":[\"** treasury shares\",\"bylaws amendment\",\"corporate governance South Korea\",\"Korean Commercial Act\",\"shareholders agreement\"],\"articleSection\":[\"Corporate Counseling\"],\"inLanguage\":\"ko-KR\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/\",\"name\":\"Treasury Share Disposal in South Korea 2026 | Atlas Legal\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#website\"},\"datePublished\":\"2026-08-11T08:53:15+00:00\",\"dateModified\":\"2026-08-11T08:55:03+00:00\",\"description\":\"Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/#breadcrumb\"},\"inLanguage\":\"ko-KR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/treasury-share-disposal-south-korea\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\ud648\",\"item\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to Dispose of Treasury Shares in South Korea\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#website\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/\",\"name\":\"Atlas Legal English Blog\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"ko-KR\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#organization\",\"name\":\"Atlas Legal English Blog\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ko-KR\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2025\\\/09\\\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png\",\"contentUrl\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2025\\\/09\\\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png\",\"width\":540,\"height\":485,\"caption\":\"Atlas Legal English Blog\"},\"image\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/person\\\/184bcdecc06f89fd6c36b29781165b55\",\"name\":\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ko-KR\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g\",\"caption\":\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\"},\"sameAs\":[\"https:\\\/\\\/atlaw.kr\"],\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/author\\\/prinz001\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Treasury Share Disposal in South Korea 2026 | Atlas Legal","description":"Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/","og_locale":"ko_KR","og_type":"article","og_title":"Treasury Share Disposal in South Korea 2026 | Atlas Legal","og_description":"Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.","og_url":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/","og_site_name":"Atlas Legal Blog","article_published_time":"2026-08-11T08:53:15+00:00","article_modified_time":"2026-08-11T08:55:03+00:00","author":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","twitter_card":"summary_large_image","twitter_misc":{"\uae00\uc4f4\uc774":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","\uc608\uc0c1 \ub418\ub294 \ud310\ub3c5 \uc2dc\uac04":"14\ubd84"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/#article","isPartOf":{"@id":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/"},"author":{"name":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/person\/184bcdecc06f89fd6c36b29781165b55"},"headline":"How to Dispose of Treasury Shares in South Korea","datePublished":"2026-08-11T08:53:15+00:00","dateModified":"2026-08-11T08:55:03+00:00","mainEntityOfPage":{"@id":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/"},"wordCount":2898,"publisher":{"@id":"https:\/\/atlaw.kr\/en-blog\/#organization"},"keywords":["** treasury shares","bylaws amendment","corporate governance South Korea","Korean Commercial Act","shareholders agreement"],"articleSection":["Corporate Counseling"],"inLanguage":"ko-KR"},{"@type":"WebPage","@id":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/","url":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/","name":"Treasury Share Disposal in South Korea 2026 | Atlas Legal","isPartOf":{"@id":"https:\/\/atlaw.kr\/en-blog\/#website"},"datePublished":"2026-08-11T08:53:15+00:00","dateModified":"2026-08-11T08:55:03+00:00","description":"Effective March 6, 2026, South Korea requires cancellation of treasury shares within one year and pro rata disposal to all shareholders on equal terms. Learn the exceptions for third-party disposal and when a bylaws amendment is mandatory.","breadcrumb":{"@id":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/#breadcrumb"},"inLanguage":"ko-KR","potentialAction":[{"@type":"ReadAction","target":["https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/atlaw.kr\/en-blog\/treasury-share-disposal-south-korea\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\ud648","item":"https:\/\/atlaw.kr\/en-blog\/"},{"@type":"ListItem","position":2,"name":"How to Dispose of Treasury Shares in South Korea"}]},{"@type":"WebSite","@id":"https:\/\/atlaw.kr\/en-blog\/#website","url":"https:\/\/atlaw.kr\/en-blog\/","name":"Atlas Legal English Blog","description":"","publisher":{"@id":"https:\/\/atlaw.kr\/en-blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/atlaw.kr\/en-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"ko-KR"},{"@type":"Organization","@id":"https:\/\/atlaw.kr\/en-blog\/#organization","name":"Atlas Legal English Blog","url":"https:\/\/atlaw.kr\/en-blog\/","logo":{"@type":"ImageObject","inLanguage":"ko-KR","@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/logo\/image\/","url":"https:\/\/atlaw.kr\/en-blog\/wp-content\/uploads\/sites\/3\/2025\/09\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png","contentUrl":"https:\/\/atlaw.kr\/en-blog\/wp-content\/uploads\/sites\/3\/2025\/09\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png","width":540,"height":485,"caption":"Atlas Legal English Blog"},"image":{"@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/person\/184bcdecc06f89fd6c36b29781165b55","name":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","image":{"@type":"ImageObject","inLanguage":"ko-KR","@id":"https:\/\/secure.gravatar.com\/avatar\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g","caption":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4"},"sameAs":["https:\/\/atlaw.kr"],"url":"https:\/\/atlaw.kr\/en-blog\/author\/prinz001\/"}]}},"_links":{"self":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts\/1837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/comments?post=1837"}],"version-history":[{"count":2,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts\/1837\/revisions"}],"predecessor-version":[{"id":1839,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts\/1837\/revisions\/1839"}],"wp:attachment":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/media?parent=1837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/categories?post=1837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/tags?post=1837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}