[Asia Economy Reporter Lee Ji-eun] Kim Jong-in, the Emergency Committee Chairman of the People Power Party, has called for the enactment of the 'Economic 3 Laws (Commercial Act, Fair Trade Act, Financial Group Supervision Act)' to reform the party, but within the party, there is still strong opposition pointing to these laws as 'corporate strangulation,' resulting in a lack of momentum for their promotion. The Democratic Party of Korea is urging the opposition to join in, hastening the processing within the regular session of the National Assembly.
The key bills of the Economic 3 Laws, including the amendments to the Fair Trade Act and the Financial Group Supervision Act, were submitted to the National Assembly's Political Affairs Committee plenary session on the 24th. However, a subcommittee to discuss the detailed contents of the bills has not yet been established. Although discussions on the amendment to the Commercial Act began earlier in the Legislation and Judiciary Committee's bill review subcommittee, progress has stalled due to unresolved disagreements between the ruling and opposition parties over the core 3% rule of the amendment.
While Chairman Kim has taken the lead in emphasizing the necessity of promoting the 'Economic 3 Laws,' the atmosphere within the People Power Party is not cooperative, labeling the legislation as 'corporate strangulation laws.' Economic experts within the party, such as lawmakers Chu Kyung-ho and Yoon Chang-hyun, had planned to hold a debate titled 'Fair Economy 3 Laws or Corporate Regulation 3 Laws?' on the morning of the same day to point out the toxic clauses of the Economic 3 Laws, but it was canceled due to the spread of COVID-19. On the 23rd, Joo Ho-young, the floor leader, also mentioned at a policy meeting with representatives from the KOSDAQ industry that "the government and ruling party are pushing amendments to the Commercial Act, including the introduction of multiple representative litigation and separate election of audit committee members, causing difficulties and risks for companies and managers."
This contrasts with Chairman Kim's emphasis on the necessity of initiating the Economic 3 Laws. On the 17th, during a lecture at the Korea Corporate Governance Forum, Kim stated, "If the contents of the law are to be softened, there is no need for amendment," expressing his position that the Economic 3 Laws should be processed as originally proposed. As the discord continued, Chairman Kim requested the processing of the Economic 3 Laws at a closed emergency committee meeting on the 23rd, saying, "Since the launch of the emergency committee, the public has not really felt the changes and reforms."
The ruling party is pressuring the opposition to process the bills within the regular session. Kim Young-jin, the senior deputy floor leader of the Democratic Party of Korea, appeared on MBC Radio's 'Kim Jong-bae's Focus' on the same day and said, "Since all the bill subcommittees will be held this week, it seems possible to process the Economic 3 Laws within this regular session. There are differences between the ruling and opposition parties regarding the Commercial Act, but there is little difference concerning the Fair Trade Act and the Financial Group Supervision Act." Earlier, Kim Tae-nyeon, the floor leader of the Democratic Party, also said, "With one month left in the regular session, Chairman Kim should persuade the party members to process the bills."
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