Lee "If the Capital Markets Act is amended, the Commercial Act may not be revised"
Differences in views confirmed between the leader and TF
Also clarified "It means the ruling party won't do it"
Lee Jae-myung, leader of the Democratic Party of Korea, said, "If the amendment to the Capital Markets Act involving pinpoint regulation is actually implemented, there would be no need to amend the Commercial Act." He believed that if the amendment to the Capital Markets Act, which the People Power Party is pushing for, is actually passed, it could replace the Commercial Act amendment proposed as the Democratic Party's official stance. Lee explained that his remark was based on his confidence that the ruling party would not amend the Capital Markets Act.
On the morning of the 28th, Lee and the Democratic Party's Stock Market Revitalization Task Force (TF) visited the Korea Exchange in Yeouido-dong, Yeongdeungpo-gu, Seoul, to hold an on-site meeting. The meeting was attended by Lee, 13 Democratic Party lawmakers, and six Korea Exchange officials. Lee said, "I visited to show our determination to definitely handle the Commercial Act amendment within the regular session of the National Assembly," adding, "Originally, it would be appropriate to amend the Capital Markets Act, but since it falls under the jurisdiction of the National Assembly's Political Affairs Committee, leaving it to them (the ruling party) is unlikely to work." Currently, the chairperson of the Political Affairs Committee is Yoon Han-hong, a member of the People Power Party.
Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the on-site meeting of the Task Force for Revitalizing the Korean Stock Market held at the Korea Exchange in Yeouido, Seoul, on the 28th. Photo by Kim Hyun-min
Contrary to Lee's remarks, TF members have consistently emphasized the need to process the Commercial Act amendment, which includes the 'duty of loyalty of directors to shareholders.' Even when the People Power Party stated that "amending the Capital Markets Act is sufficient," the TF argued that "both should be pursued." The Commercial Act amendment proposed by the Democratic Party as its official stance on the 14th includes provisions such as ▲expanding the duty of loyalty to shareholders ▲mandatory application of cumulative voting for large listed companies ▲expanding separate election of audit committee members in large listed companies ▲establishing regulations for independent directors and electronic shareholder meetings in listed companies.
On the day of the meeting, TF leader Oh Ki-hyung said, "Coming here and saying not to amend the Commercial Act but only to make minor adjustments to parts of the Capital Markets Act, to respond with pinpoint regulation, is truly a bad political behavior." Although this was a remark targeting the ruling People Power Party, it was completely at odds with Lee's remarks. Even after Oh's statement, Lee said, "Pinpoint regulation is generally a correct term," and added, "If a reasonable amendment to the Capital Markets Act, as claimed by the business community, is passed, I am saying that the issue of amending the Commercial Act could be partially changed."
When a reporter said, "Does this mean that if the Capital Markets Act is amended, the Democratic Party could concede the Commercial Act amendment proposed as its official stance?" Lee replied, "It's not a concession but a replacement," explaining, "The Commercial Act contains very broad and general provisions, so if it can be replaced by the Capital Markets Act amendment, it makes sense to do it systematically." He added, "I said that because I believe there is a 99% chance that the Political Affairs Committee will not do this."
The Democratic Party is also preparing for a Q&A-style debate next month on the 4th, involving business circles and investors.
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