Lee Jae-myung: "Corporate Governance Will Be Changed to Advanced Country Level... Need to Discuss Breach of Trust Issues"

"Companies Cannot Enjoy International Competitiveness Through Unfair Profits"

Lee Jae-myung of the Democratic Party of Korea expressed his determination to amend the Commercial Act to bring corporate governance to the level of advanced countries. However, he emphasized the need for careful discussion regarding the abolition of the crime of breach of trust, which the business community is demanding.

Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 13th. Photo by Kim Hyun-min

On the 15th, through the Supreme Council meeting held at the National Assembly in Yeouido, Seoul, Lee said, "The exchange rate has surpassed 1,400 won, the KOSPI has fallen below the 2,400 mark, and the KOSDAQ has plummeted to an absurd extent," adding, "(People) are talking about a perfect storm. The Korean economy is indeed in a very serious situation." The term "perfect storm" refers to an economic crisis caused by the convergence of multiple problems.

Lee emphasized the necessity of amending the Commercial Act. He said, "Due to the bizarre corporate governance structure, even blue-chip stocks that were supposed to be long-term investments suddenly become worthless junk stocks," and added, "We must face the fundamental problems of the stock market and the serious situation of the Korean economy. The Democratic Party will do what it can."

He also refuted the business community's claim that the passage of the Commercial Act amendment would harm corporate competitiveness due to the proliferation of lawsuits. Lee stated, "At the very least, we will definitely change corporate governance to the level of advanced countries," and said, "If companies competing with global corporations worldwide seek unfair profits, they will not be able to enjoy international competitiveness."

However, he hinted at the possibility of discussing the abolition of the crime of breach of trust, which companies are demanding. Lee said, "Concerns about prosecution investigations and the issue of breach of trust in corporate management are also pointed out by the ruling party and Lee Bok-hyun, the Governor of the Financial Supervisory Service," and added, "The issue of breach of trust, which can be a means of abuse of prosecutorial power, needs to be carefully discussed."