Exchange Announces Amendment to Listing Rules Enforcement Regulations to Allow SPAC Extinction Mergers

[Asia Economy Reporter Minji Lee] The Korea Exchange announced on the 28th that it will revise the detailed enforcement rules of the listing regulations as a follow-up measure to the amendment of regulations allowing merger listings through the SPAC extinction method.

The Exchange plans to implement the revision in line with the expected amendment to the Enforcement Decree of the Corporate Tax Act next month, after collecting opinions from stakeholders and investors. The amendment pertains to recognizing mergers by the SPAC extinction method as qualified mergers. The applicable entities are corporations applying for preliminary review of merger listings after the enforcement date.

The Exchange stated, "With the enforcement of this regulation, corporations pursuing mergers will be able to significantly resolve inconveniences previously experienced in SPAC continuation mergers, such as the extinction of past business history due to the dissolution of corporate status, and re-registration with government offices and vendors."