The Korea Economic Organization Association, the Korea Chamber of Commerce and Industry, the Korea Federation of Medium-sized Enterprises, the Korea Listed Companies Association, and the KOSDAQ Association announced on the 26th that they have published the "Global Standard Regulatory Improvement Joint Proposal," which contains improvement plans for corporate governance, fair trade, and tax systems.
This proposal includes policy recommendation tasks presented based on joint research conducted by these organizations since April, along with the contents of the September discussion focused on corporate governance, fair trade, and corporate tax fields.
The five economic organizations plan to deliver the proposal to government ministries and the National Assembly so that the government can utilize it in preparing corporate system improvement measures.
Looking at the main contents of the proposal, in the corporate governance and capital market sector, the seven major countries (G7) that have adopted derivative lawsuits were cited as examples. It was suggested that Korea should recognize derivative lawsuits only for 100% wholly-owned subsidiary relationships.
In the fair trade sector, it was pointed out that Korea has the strictest regulations on corporate group legislation and holding companies compared to major countries, advising that preemptive regulations of the Fair Trade Act such as debt ratio, great-grandchild companies, and separation of financial and industrial capital should be relaxed to meet global standards.
From the tax perspective, it was mentioned that while many OECD member countries adopt a single corporate tax rate system, Korea maintains a complex four-tiered tax bracket system. It was argued that corporate tax should not be used as a redistribution policy tool and should be reformed to align with the levels of major countries.
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