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Laws › Commercial Act › SECTION 4 Issuance of New Shares

Commercial Act — Article 420-2 (Issuance of Certificates of Preemptive Rights)

상법 제420조의2

This English translation is based on the Korean text effective 2018-12-19. The Korean law has since been amended (current version effective 2026-09-10) — check the Korean original.

(1) In cases where a company has provided for matters set forth in subparagraph 5 of Article 416, the company shall issue certificates of preemptive rights in accordance with subparagraph 6 of Article 416, if applicable, or issue them at least two weeks prior to the date under Article 419 (1), as the case may be.

(2) Each certificate of preemptive right shall contain a serial number in addition to the following and directors shall write their names and affix their seals, or shall affix their signatures, thereon: <Amended by Act No. 5053, Dec. 29, 1995>

1. A statement to the effect that it is a preemptive right;

2. Matters set forth in Article 420;

3. The class and number of shares subject to the preemptive right;

4. A statement to the effect that the right shall be forfeited if subscription to shares is not applied for on or before the specified date.[This Article Newly Inserted by Act No. 3724, Apr. 10, 1984]

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