[Exclusive] Democratic Party Adopts Party Position on April 14th 'Expansion of Directors' Duty of Loyalty' Amendment to Commercial Act

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 4th. Photo by Kim Hyun-min

The Democratic Party of Korea will adopt a revision to the Commercial Act that expands the duty of loyalty of directors to include shareholders as the party's official stance on the 14th.

According to the National Assembly and the financial investment industry on the 13th, the Democratic Party plans to hold a party caucus at 10:30 a.m. on the 14th to adopt the Commercial Act amendment as the party's official position.

A member of the Democratic Party's Korea Stock Market Revitalization Task Force (TF) told Asia Economy in a phone interview, "It seems that the party caucus tomorrow will proceed with the procedure to endorse the Commercial Act amendment as the party's official stance."

He also said regarding the future handling of the bill in the standing committee, "Since there are significant concerns from the business community, I think we need to go through more public discussion procedures first," adding, "We will continue to spread the necessity of amending the Commercial Act."

As Lee Jae-myung, leader of the Democratic Party of Korea, brought up the card of abolishing the financial investment income tax along with the Commercial Act amendment, it is observed that preparations for related bills are also accelerating. Lee announced at the Supreme Council meeting on the 6th that the Commercial Act amendment would be processed within this year. He also plans to attend the event "Donghak Ants Meeting" hosted by Democratic Party lawmakers Park Ju-min and Lee Eon-ju on the 20th.

The Stock Market Revitalization TF, which is pushing for the Commercial Act amendment, has also been continuing behind-the-scenes preparations in line with Lee's actions. On the 12th, the TF held a meeting to gather opinions from small investors. On the 8th, it held a forum titled "Discussion on the Duty of Loyalty of Directors and Institutional Improvement Measures to Ensure Proportional Benefits for Shareholders," where academic and business opinions on the Commercial Act amendment were heard.