KCCI "Growing Uncertainty... Concerns Over Commercial Act Revision"
Jinseongjun "Discussing Governance Improvement When Abolishing Financial Investment Tax"
The Democratic Party's 'Task Force for Revitalizing the Republic of Korea Stock Market' listened to opinions from the business community regarding the amendment to the Commercial Act. Park Il-jun, Executive Vice President of the Korea Chamber of Commerce and Industry, mentioned geopolitical uncertainties and low economic growth forecasts, emphasizing that "promotion is needed rather than regulation."
On the morning of the 29th, the Democratic Party held a meeting at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to share perceptions about the recently proposed Commercial Act amendment, which the party is pushing as its official stance. The party's bill centers on imposing a 'fiduciary duty of directors to shareholders.' It also includes provisions such as the 'mandatory application of cumulative voting' and 'expanded separate election of audit committee members' to improve corporate governance. The business community opposes the amendment, arguing that it imposes comprehensive and excessive burdens on companies.
On the morning of the 29th, Jin Sung-jun, the Policy Committee Chairman of the Democratic Party, is giving a greeting at the Democratic Party's Stock Market Revitalization Task Force (TF) - Economic Sector Meeting held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Yonhap News
At the meeting, Executive Vice President Park said, "From a national perspective, there are many opinions that industrial promotion policies are needed rather than regulations," adding, "Honestly, there are many concerns as discussions on the Commercial Act amendment are resuming after four years." He continued, "Uncertainties have increased since the U.S. presidential election, and as the Bank of Korea announced, economic growth forecasts have been downgraded," and expressed hope that "this meeting would provide an opportunity for lawmakers to listen openly to the voices from the business field."
Following him, Jin Sung-jun, Policy Committee Chair of the Democratic Party, revealed that there was consensus within the party on the Commercial Act amendment when deciding to abolish the financial investment income tax (Fintax). Jin said, "When deciding on the introduction of Fintax, investors' unanimous demand was that improving corporate governance is the top priority," and added, "Within the party, there was no disagreement that the Commercial Act amendment should proceed (unlike Fintax)." However, he also acknowledged, "Of course, companies may express difficulties in management," and pledged, "We will compromise on business demands through communication."
The meeting was attended by 12 Democratic Party lawmakers, including Policy Committee Chair Jin Sung-jun and members of the task force. From the business organizations, seven people attended, including Executive Vice Presidents Park Il-jun and Lee Dong-geun of the Korea Employers Federation (KEF). From the corporate side, executives from the four major companies attended: Park Seung-hee, President of Samsung Electronics; Lee Hyung-hee, Chairman of SK Supex Communication Committee; Kim Dong-wook, Vice President of Hyundai Motor Company; and Ha Beom-jong, President of LG.
The Democratic Party intends to pass the Commercial Act amendment within this year. Following this meeting, the party will hold a forum with the business community on the 4th of next month. Lee Jae-myung, the party leader, is also scheduled to attend the upcoming forum.
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