According to a Korea Times report this week, the country's lawmakers have voiced concerns over the stakes held in domestic financial services and other firms by overseas investors.
Recent estimates have suggested that foreign investors are holding stakes equivalent to around half of Korean banks, and a stake of around 70% in the country's top 20 listed companies is owned by foreign investors and institutions.
Speaking during a meeting with economy ministers on Monday, Rep. Song Young-kil of the Uri Party reportedly argued that:
"Problems with foreigners' excessive stock holding include the possibility of surrendering management rights due to their hostile takeover attempts, massive outflow of domestic capital and the growing risk to the financial system."
GNP Representative Kim Young-sun concurred, observing that:
"Hostile takeovers are hindering local companies from pushing for competitiveness in technology and investment in research and development."
It has also been suggested that domestic firms are being obliged to maintain higher standards in terms of investment and voting rights than their foreign-owned counterparts.
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