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Commercial Act — Article 432 (Judgments of Nullification and Refunds to Shareholders)

상법 제432조

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) When a judgment nullifying issuance of new shares becomes final and conclusive, the company shall refund to each shareholder the amount paid by him/her for new shares.

(2) If an amount mentioned in the preceding paragraph is considerably unreasonable in view of the status of the company's assets as at the time a judgment mentioned in paragraph (1) of the preceding Article becomes final and conclusive, the court may order either an increase or decrease in such amount, upon request of the company or of such shareholder mentioned in the preceding paragraph.

(3) The provisions of Articles 339 and 340 (1) and (3) shall apply mutatis mutandis in cases falling under paragraph (1).

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