Six Major Economic Organizations: "Amendments to the Commercial Act and Fair Trade Act Will Seriously Harm Our Economy"

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Six economic organizations, including the Federation of Korean Industries, the Korea Federation of SMEs, the Korea Employers Federation, the Korea Listed Companies Association, the KOSDAQ Association, and the Korea Association of Mid-sized Enterprises, have issued a joint statement on the Commercial Act and the Fair Trade Act. They stated, "This bill will have a serious adverse effect on the national economy," and requested that the National Assembly reflect the economic sector's opinions during the review process.

In a joint statement on the 16th, the six economic organizations said, "The government's proposed amendments to the Commercial Act and the Fair Trade Act currently pending in the National Assembly contain provisions that severely restrict corporate management activities."

They continued, "If the Commercial Act and Fair Trade Act are passed, threats to corporate management rights will increase, and funds that should be used for investment and job creation will be consumed by unnecessary share purchases, causing serious side effects. The main contents of the amendments are Galapagos-style regulations that do not align with global standards. Their introduction will weaken the global competitiveness of our companies and, furthermore, have a serious adverse impact on the national economy," they pointed out.

The economic organizations also emphasized, "Now is the time to overcome the economic crisis. Countries around the world are focusing on deregulation of companies to overcome the crisis. We must prioritize deregulation that allows companies to freely invest and create jobs, and be cautious about amendments to the Commercial Act and Fair Trade Act that pour cold water on crisis recovery. We hope that the economic sector's opinions will be actively reflected in this regular session of the National Assembly."

Last month on the 25th, the government approved amendments to the Commercial Act at the Cabinet meeting, which include the introduction of a multiple derivative lawsuit system and separate election of audit committee members. Additionally, amendments to the Fair Trade Act were also approved at the Cabinet meeting, abolishing the exclusive prosecution system by the Fair Trade Commission for price-fixing, supply restrictions, market division, and bid-rigging, allowing the prosecution to start investigations immediately even without a complaint.

Despite opposition from the economic sector, these bills are scheduled for review by the National Assembly. Furthermore, Kim Jong-in, the emergency committee chairman of the People Power Party and leader of the opposition, recently stated in a media interview, "I think the Commercial Act and Fair Trade Act should be comprehensively amended," causing a stir.