Lee Jae-myung "Domestic Economy Faces Structural Difficulties"
Lee Jae-myung, leader of the Democratic Party of Korea, criticized the government and ruling party for their reserved stance on the amendment of the Commercial Act, emphasizing the need to resolve the structural difficulties faced by the domestic economy and stock market.
Lee Jae-myung, leader of the Democratic Party of Korea, is presiding over the Supreme Council meeting held at the National Assembly on the 27th. Photo by Kim Hyun-min
On the 27th, during the Supreme Council meeting held at the National Assembly in Yeouido, Seoul, Lee said, "There are many words that define this administration, such as yangduguyuk (a four-character idiom meaning 'looks good on the outside but lacks substance'). These days, it is often called a 'government of words only,' and I sympathize with this nickname." He continued, "The amendment of the Commercial Act is the same. It is all talk. Key figures in the government and ruling party said the Commercial Act should be amended, but now that we are actually moving to amend it, they have turned against it. They are even obstructing the amendment, and I wish they would at least explain their reasons," he pointed out.
Lee diagnosed that the domestic economy is facing structural difficulties. He analyzed the causes of the sluggish domestic stock market as ▲lack of government industrial and economic policies ▲weak penalties for stock manipulation and abuse of management rights ▲board decisions that do not consider ordinary investors ▲geopolitical risks on the Korean Peninsula. Lee said, "Because of these four causes, the domestic economy, including the stock market, is facing structural difficulties. If the government does not make a fundamental policy shift, the domestic economy will fall into danger, livelihoods will become difficult, and Korea's future will inevitably be bleak."
Lee emphasized that he will push for the amendment of the Commercial Act within this regular session of the National Assembly. He said, "To fundamentally prevent abuse of management rights in the stock market, we will amend the Commercial Act to expand directors' fiduciary duties to shareholders and enact various legislations to protect shareholders' rights during this regular session. There are objections from the business community regarding the amendment, but we will listen to all opinions and accommodate necessary ones to reconcile interests," he said.
On the 22nd, Lee proposed a public debate with the business community and ordinary shareholders. He is also expected to attend the debate.
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