Lee Bok-hyun "The Board of Directors Must Be Accountable to Companies and Shareholders"

Lee Bok-hyun Attends 'Corporate Governance Improvement Seminar'
Hosted by KOSDAQ Association and Others Resuming Events
Reiterates Inclusion of 'Shareholders' in Commercial Act Amendments

Lee Bok-hyun, Governor of the Financial Supervisory Service, is delivering a congratulatory speech at the "Corporate Governance Seminar for Capital Market Advancement" held on the morning of the 12th at the Korea Financial Investment Association in Yeongdeungpo-gu, Seoul.
[Image source=Yonhap News]

Lee Bok-hyun, Governor of the Financial Supervisory Service, stated on the 26th regarding the amendment of the Commercial Act (Duty of Loyalty of Directors) that "the board of directors should set strategic guidelines for the company, effectively monitor the management, and also bear responsibility towards the company and its shareholders." This is interpreted as a reiteration that 'shareholders' should also be included in the amendment of Article 382-3 of the Commercial Act (Duty of Loyalty of Directors).

Governor Lee attended the 'Corporate Governance Improvement Seminar' held at the Listed Companies Hall in Mapo-gu, Seoul, in the morning and said, "Corporate governance must be established to ensure that all shareholders are guaranteed fair treatment."

In particular, Governor Lee emphasized, "For the advancement of the capital market, it is urgent to establish a new paradigm of corporate governance where all shareholders can equally enjoy corporate performance," adding, "When the belief that the interests of controlling shareholders and minority shareholders are balanced is established, the Korea discount will be resolved."

He further stressed, "Along with the introduction of a new paradigm, it is also possible to improve systems that remove various legal and institutional obstacles that have hindered the predictability of corporate activities due to excessive regulations or tax burdens lacking international consistency, intertwined with the unique characteristics of Korean corporate governance, and actively encourage creative and adventurous corporate activities."

Governor Lee added, "If discussions on this uncomfortable topic are postponed, overcoming future crises will become even more difficult," and urged, "We must reach a sound and progressive social consensus through frank discussions as soon as possible."

Additionally, Governor Lee emphasized that the second half of this year is the optimal time to prepare constructive alternatives for the advancement of the capital market. He stated, "Along with progressive discussions to establish a new paradigm of corporate governance, discussions on tax reforms supporting capital market advancement, such as inheritance tax and financial investment tax, are also awaited," and added, "We will continue to hold close discussions with academia, the business community, market experts, and related institutions to ensure we do not miss this 'golden time.'"