Lee Jae-myung Meets Ant Investors: "Will Firmly Pursue Commercial Act Amendment Alongside Abolition of Financial Investment Tax"

Lee Jae-myung Expresses Concern Over Side Effects of Commercial Act Revision "Possibility of Litigation Abuse"
Stock Investors Ask "Why Isn't Han Dong-hoon Participating in the Commercial Act Revision?"

Lee Jae-myung, leader of the Democratic Party of Korea, expressed his intention to meet with individual investors and firmly push for the repeal of the financial investment income tax (금투세) along with the amendment of the Commercial Act. While emphasizing that the ruling party's passive attitude, including that of Han Dong-hoon, leader of the People Power Party, regarding the amendment of the Commercial Act is "unacceptable," he also stated that concerns companies have, such as the proliferation of lawsuits, will be reviewed.

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at a meeting with individual investors to revitalize the domestic stock market held at a cafe in Yeouido, Seoul, on the 20th. Photo by Kim Hyun-min

On the 20th, Lee held a 'General Investor Meeting for Revitalizing the Domestic Stock Market' at a cafe in Yeouido, Seoul, meeting with ordinary stock investors. Lee said, "Amending the Commercial Act to expand the duty of loyalty of directors is a systematic way to solve the problem of abuse of corporate control," adding, "This time, we will definitely push for the amendment of the Commercial Act simultaneously with the repeal of the financial investment income tax." He continued, "If the capital market and political situation normalize, stock values could nearly double," emphasizing, "I believe the KOSPI index could reach the 4,500 level."

He firmly stated that he cannot agree with the government's proposed amendment to the Commercial Act. The government is pursuing a compromise amendment that adds a 'duty of effort' instead of expanding the duty of loyalty of directors to shareholders. Lee said, "If they don't do it, then they don't, but they should not deceive the public," adding, "If it is just a formal amendment, then it should not be done."

However, Lee also expressed concerns about side effects from the amendment of the Commercial Act, citing that the proliferation of lawsuits could stifle corporate management activities. He said, "In an unstable situation, companies cannot make decisions," and "If the duty of loyalty of directors is expanded to shareholders, companies could be caught up in lawsuits every time they make a decision." Ordinary investors attending the meeting rebutted this. Oh Kwang-hwa, an operating committee member of the Doosan Enerbility Shareholders' Solidarity, said, "The level of our people is not so low as to file numerous breach of trust accusations," adding, "In the past, companies obstructed union formation, saying it would ruin the company. I earnestly ask that the amendment of the Commercial Act not be intimidated by companies' exaggerations."

Lee Jae-myung, leader of the Democratic Party of Korea, is greeting attendees at a meeting for general investors aimed at revitalizing the domestic stock market, held on the 20th at a cafe in Yeouido, Seoul. Photo by Kim Hyun-min

At the meeting, dissatisfaction was expressed toward the People Power Party for not pushing the amendment of the Commercial Act. Jang Jun-ho, leader of the DI Dongil Small Shareholders Solidarity, said to Lee, "The ruling party claims to support individual investors by advocating for the repeal of the financial investment income tax, but it is hard to understand why they are not participating in the amendment of the Commercial Act." Lee replied, "In politics, things happen that are unacceptable from the public's perspective," adding, "Politics is about exercising power entrusted by the people. Power must be exercised in accordance with the essence of delegation for the people and the nation." Lee So-young, a Democratic Party lawmaker, criticized, "Please ask Leader Han. He says he is sincere to stock investors, but why does he do nothing after the repeal of the financial investment income tax?"

Stock investors shared various difficulties in the stock market. Bae Chang-sik, leader of the KT Small Shareholders Solidarity, argued that long-term investors should be given tax rate benefits through separate taxation on dividend income. Lee said, "I believe lowering the dividend income tax would have an overall positive effect on tax revenue," but expressed concerns about public opinion. He said, "If we lower (dividend income tax), it is a matter of cutting taxes, which could be seen as a tax cut for the wealthy," adding, "Once it enters the political realm, it becomes a subject of debate and is not easy. I cannot do it at will, and there are conflicting opinions."

He also urged the need to resolve uncertainty and information asymmetry in the stock market. Kim Hyun, leader of the Ewha Group Small Shareholders Solidarity, said, "For suspended stocks to resume trading, the trial results on embezzlement and breach of trust charges must come out, but the trials take too long," adding, "Companies fall into uncertainty." University student Park Soo-bon pointed out, "Currently, disclosures rely solely on corporate autonomy," and "The state fosters information asymmetry between companies and stock investors." Lee agreed on the necessity of normalizing the stock market and emphasized that the interest of stock investors must continue.