Democratic Party: "Amendment to Commercial Act, 'Duty of Effort' Is Not Considered at All"

Opposition, 1st Meeting of Task Force for Revitalizing South Korea Stock Market
Park Chan-dae "People Power Party, Stop Obstructing and Cooperate"

The Democratic Party of Korea has launched an all-out effort to promote amendments to the Commercial Act and the Capital Market Act. The newly established 'Republic of Korea Stock Market Revitalization Task Force (TF)' stated that it will definitely include the 'duty of loyalty to shareholders' in the Commercial Act amendment. Lee Jae-myung, leader of the Democratic Party, emphasized, "We will swiftly and strongly implement measures to normalize the capital market so that the stock market can revive."

At the first meeting held at the National Assembly on the morning of the 6th, the TF announced its plan to pass the amendment to the Commercial Act within the year, expanding the duty of loyalty of directors under the Commercial Act from 'the company' to 'the company and shareholders.' Park Chan-dae, floor leader, said at the meeting, "We plan to achieve legislative results by the end of this year," adding, "We are experiencing the Korea discount, but the government neither prepares nor implements measures to improve the structural difficulties of the stock market." He continued, "The Democratic Party will devote all efforts to stock market advancement policies, including the amendment to the Commercial Act," and urged, "We call on the People Power Party not to obstruct and to actively cooperate."

Park Chan-dae, floor leader of the Democratic Party of Korea, is speaking at the 1st meeting of the Task Force for Revitalizing the Korean Stock Market held at the National Assembly on the 6th. From left: Kim Hyun-jung, Lee Jung-moon, Jin Sung-jun, Park Chan-dae, and Oh Ki-hyung. Photo by Kim Hyun-min

Regarding the 'duty of effort' mentioned by some, the Democratic Party drew a clear line, stating it is not under consideration. Oh Ki-hyung, a lawmaker heading the TF, said, "The expression 'duty of effort' is not considered at all," and added, "The duty of loyalty has very few theoretical issues." The Democratic Party is also discussing measures such as the cumulative voting system and separate election of auditors, but there is no room for concession regarding the directors' duty of loyalty.

The Democratic Party is gathering opinions from various sectors concerning the amendment. Kim Nam-geun, TF secretary, said, "We will listen to the opinions of legal scholars, economists, and business circles such as the Korea Chamber of Commerce and Industry," adding, "The government has also announced that it will soon release policies, so we hope not to delay the process." The TF will hold three discussion sessions on the issues surrounding the amendment to the Commercial Act starting from the 8th. If necessary, they will also hold meetings with investors and businesspeople.

This content was produced with the assistance of AI translation services.