Reasonable Concerns from Business Community Addressed During Bill Deliberation
Separate Election of Audit Committee Members and Abolition of Exclusive Prosecution System Are "Close to Groundless"
[Asia Economy Reporter Jeon Jin-young] Kim Tae-nyeon, the floor leader of the Democratic Party of Korea, emphasized that he would complete the legislation within the regular session of the National Assembly, stating that the business community's opposition to the "Fair Economy 3 Acts" is an excessive concern.
Kim Tae-nyeon, floor leader of the Democratic Party of Korea, is attending the policy coordination meeting held at the National Assembly on the 24th and delivering opening remarks. Photo by Yoon Dong-joo doso7@
At the policy coordination meeting held at the National Assembly on the morning of the 24th, Floor Leader Kim said, "Discussions on the Fair Economy 3 Acts have been ongoing for a long time. When the government proposed the bill, it was created by sufficiently reflecting opinions from various sectors."
He stated, "Economic democratization and chaebol reform were common pledges of both ruling and opposition parties in the 2012 presidential election. During the Park Geun-hye administration, a revision to the Commercial Act was announced for legislation, but after meetings with the heads of the top 10 chaebols, economic democratization disappeared from the Park Geun-hye administration and Saenuri Party, the predecessor of the People Power Party."
He added, "Issues such as large corporations' governance problems, private interests of the heads of conglomerates, and unfair transactions that harm a fair market economy still remain. We cannot delay legislation to create a sustainable and fair economic ecosystem."
Floor Leader Kim said, "The business community is expressing excessive concerns that the Fair Economy 3 Acts will strangle companies. Fair economy is the foundation for making the country good for business and investment. To overcome COVID-19, we must also change the economic structure and resolve unfairness."
Regarding the separate election of audit committee members and the abolition of the exclusive prosecution system, which the business community claims are toxic provisions, he said, "These concerns are close to groundless." Floor Leader Kim explained, "The threat to management rights caused by the introduction of the separate election system for audit committee members included in the Commercial Act amendment is close to groundless. It has already been established and is being smoothly implemented in the financial sector. Strengthening the board of directors' supervisory function over the audit committee will also enhance corporate competitiveness."
He continued, "Concerns about the excessive filing of lawsuits and accusations against companies due to the amendment of the Fair Trade Act are also groundless. Even if the exclusive prosecution system is abolished, lawsuits and accusations will be limited to some hardcore collusive acts such as price bid rigging that cause significant consumer damage."
He said, "We will carefully create alternatives and supplement them during the bill review process to address the reasonable concerns of the business community. The party will also collect opinions from various sectors centered on the Policy Committee and have sufficient discussions with related standing committee members."
Nevertheless, he reiterated, "However, I would like to say that we will complete the legislation in this National Assembly session," emphasizing the completion of legislation within the regular session again.
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