[Exclusive] Democratic Party Relaunches Commercial Act Amendment... Aiming for Passage in the Judiciary Committee This Month

Democratic Party Requests Commercial Act Public Hearing in Law Committee
Plans to Pass Bill in Early Plenary Session
Ruling Party Expected to Oppose... "Pinpoint Regulations Needed"

The Democratic Party of Korea has restarted the stalled process of amending the Commercial Act from last year. They are gathering public opinion by holding a public hearing, which had been delayed due to the December 3 emergency martial law incident and the Jeju Air disaster, aiming to pass the bill through the National Assembly's Legislation and Judiciary Committee (Law Committee) within this month.

According to political circles on the 10th, the Democratic Party requested Park Beom-gye, the new opposition party's Law Committee secretary from the Democratic Party, to hold a public hearing on the Commercial Act amendment at the Law Committee's Bill Subcommittee 1. The public hearing was scheduled to be held on the 30th of last month at Bill Subcommittee 1 but was postponed due to the Jeju Air disaster and other incidents. A Democratic Party official said, "The schedule for the public hearing is a matter for the Law Committee to decide," adding, "We asked to bring it forward as soon as possible."

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Democratic Party of Korea policy debate held at the National Assembly on the 19th, on the topic of "How to Amend the Commercial Act." Photo by Kim Hyun-min

The public hearing is planned to be conducted mainly with academics and experts. This is interpreted as an effort to reflect not only the voices of stakeholders related to the Commercial Act amendment but also academic opinions. Democratic Party leader Lee Jae-myung personally chaired a policy debate on the 19th of last month, listening to opinions from the business community and small investors. The Democratic Party also plans to hold consecutive discussions on the scope of amendments to the Capital Markets Act to supplement the Commercial Act amendment and on the stewardship code. A Democratic Party official said, "Usually, the Law Committee's Bill Subcommittee meetings are held privately, but we are considering allowing observers," adding, "We have requested the Law Committee to allow journalists and lawmakers who wish to attend to observe."

The Democratic Party has also set a policy to pass the Commercial Act amendment through the Law Committee within this month. Leader Lee had announced on the 10th of last month that the amendment would be processed in the plenary session by the regular National Assembly session, but it was continuously delayed due to the December 3 emergency martial law incident and the Jeju Air disaster. If the amendment passes the Law Committee within this month, it is believed that it could be processed in the plenary session early this year. At the policy debate on the 19th of last month, Leader Lee said, "It is a very difficult topic, but it is an issue for which the Democratic Party must take considerable responsibility," and added, "We will strive to reach a rational decision."

However, opposition from the ruling party is expected. The People Power Party has continuously emphasized the need for a 'pinpoint amendment' focusing on the Capital Markets Act amendment rather than the Commercial Act amendment. Kim Sang-hoon, the policy chief of the People Power Party, said at the party's floor strategy meeting on the 19th of last month, "The Democratic Party's excessive and reckless Commercial Act reform will be an arbitrary bomb against our companies and economy," adding, "Pinpoint regulations can protect the interests of good-faith general shareholders during corporate mergers and acquisitions or physical division processes."