FKI "Resolution of the Commercial Act Enforcement Decree, Excessive Government Interference in Corporate Management"

[Asia Economy Reporter Dongwoo Lee] The Federation of Korean Industries (FKI) expressed serious concerns on the 21st regarding the enforcement decree amendments of the Commercial Act and the Capital Market Act, which were approved at the Cabinet meeting, stating that they involve excessive government interference in corporate management.

In a statement released that day, the FKI argued, "It is highly concerning that pension funds can demand amendments to articles of incorporation or request the dismissal of executives without declaring management participation, as this increases government interference in companies and undermines the autonomy of corporate management." They also claimed, "Limiting the term of outside directors damages the flexibility of personnel management and the expertise of the board of directors."

Furthermore, the FKI emphasized, "Requiring the attachment of business reports when convening general shareholders' meetings undermines the completeness of business reports," and warned, "Such infringements on corporate management autonomy will ultimately suppress investment and become an obstacle to job creation."

Baek Sang-geun, Executive Director of the FKI, stated, "Considering the difficult domestic and international economic environment, we request a reconsideration of the enforcement decree amendments so that companies can focus on their core management activities and contribute to economic revitalization."