"Lowering Corporate Value Deepens Korea Discount"
"Hostile Takeover Forces Favor Activist Funds Only"
Senior vice presidents of six major economic organizations gathered to express concerns about recently proposed corporate regulatory measures in the National Assembly. They plan to convey the business community's concerns regarding legislation by submitting a joint petition to the National Assembly and the government.
On the 6th, the full-time vice presidents of six major economic organizations held a breakfast meeting to discuss the legislative status of the 22nd National Assembly, including corporate governance regulatory bills. From the left: Park Yang-gyun, Director of the Korea Association of Mid-sized Enterprises; Jung Yoon-mo, Full-time Vice President of the Korea Federation of Small and Medium Business; Kim Chang-beom, Full-time Vice President of the Korea Economic Association; Lee Dong-geun, Full-time Vice President of the Korea Employers Federation; Park Il-jun, Full-time Vice President of the Korea Chamber of Commerce and Industry; Cho Sang-hyun, Director of the International Trade and Commerce Research Institute at the Korea International Trade Association.
[Photo by Hankyung Association]
On the morning of the 6th, the senior vice presidents of the six economic organizations held a breakfast meeting at a location in Seoul to discuss the current status of corporate regulatory legislation.
Attending the breakfast were Kim Chang-beom, Senior Vice President of the Korea Economic Association; Park Il-jun, Senior Vice President of the Korea Chamber of Commerce and Industry; Lee Dong-geun, Senior Vice President of the Korea Employers Federation; Jung Yoon-mo, Senior Vice President of the Korea Federation of Small and Medium Business; Cho Sang-hyun, Director of the International Trade and Commerce Research Institute at the Korea International Trade Association; and Park Yang-gyun, Head of the Korea Federation of Mid-sized Enterprises.
According to the six economic organizations, since the opening of the 22nd National Assembly on May 30, there have been 18 proposed amendments to the Commercial Act pending before the Legislation and Judiciary Committee as of the end of last month. Among these, 14 contain provisions that strengthen corporate governance regulations.
Additionally, the Political Affairs Committee has seen the introduction of a bill to enact the "Act on the Governance of Listed Companies," which significantly tightens governance regulations for listed companies.
The senior vice presidents of the six economic organizations agree with the legislative intent to restore trust among shareholders and investors but express concerns that the measures could damage corporate value, exacerbate the Korea discount, and have limited effectiveness in protecting retail investors.
They also noted that situations could arise where hostile takeover forces or global activist funds might gain an advantage over companies.
The vice presidents of the economic organizations agreed to closely cooperate in responding to future corporate regulatory bills. They plan to soon submit a joint petition regarding the strengthening of corporate governance regulations to the National Assembly and the government.
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