The Korea Economic Research Institute is advising the nation's corporations to consider adopting poison pill plans to fend off possible hostile takeover bids.
 
Citing concerns over overseas speculative funds' stock ownership of Korean listed firms, the institute suggested launching shareholder rights plan in a report Tuesday.
 
The institute said that among 730 companies listed on the Korea Composite Stock Price Index (KOSPI) as of March, foreign investors held more than 50 percent of the shares of 26 companies. Among companies listed on the tech-heavy KOSDAQ, foreigners held more than half of the shares in 41 companies.
 
Corporations with more than 50 percent foreign ownership include KT&G, Emart, POSCO, Shinsegae, Naver, Samsung Electronics, Samsung Fire and Marine Insurance and SK Hynix.
 
A poison pill plan allows existing shareholders to buy more shares at a discount. By diluting the value of its shares, the target company becomes unattractive to a bidder.