The Democratic Party Criticizes Forced Passage of Commercial Act Amendment and Myeong Taegyun Special Prosecutor Act as "Election-Year Malicious Laws"

PPP Floor Spokesperson Criticizes "Election-Driven Malicious Law"
Raises Concerns Over Shareholder Fiduciary Duty Amendment and Myeong Taegyun Special Prosecutor Act

The People Power Party (PPP) opposed the ruling party's handling of the amendment to the Commercial Act, which centers on directors' fiduciary duties to shareholders, and the 'Myeong Taegyun Special Prosecutor Act' at the National Assembly's Legislation and Judiciary Committee's bill review subcommittee, calling it an "election-driven malicious law."

Yoo Sang-beom, the PPP's floor spokesperson on the Legislation and Judiciary Committee, criticized at a press conference on the 24th after the amendment passed the subcommittee, saying, "If such fiduciary duties to shareholders are imposed, the possibility that shareholders can directly hold directors accountable for various issues arising during management activities will increase, and in this case, it is uncertain how the existing legal relationships recognized under the current Commercial Act will change."

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Yoo added, "From the perspective of Korean joint-stock companies, this bill significantly raises legal risks," and pointed out, "It is the Democratic Party's double standard to produce a bill containing provisions that, while claiming to be 'moderate conservatives,' inevitably severely restrict corporate management activities."

He also rebutted, saying, "Representative Lee lied by saying that the People Power Party is blocking the amendment to the Commercial Act because it opposes the Capital Market Act," and added, "The PPP has already proposed necessary measures to protect minority shareholders related to fiduciary duties in special cases such as M&A or physical division, in consultation with the government." The PPP's Yoon Han-hong (Chairman of the National Assembly's Political Affairs Committee) has proposed an amendment to the Capital Market Act that imposes 'targeted regulations' only on listed companies in response to the Democratic Party's amendment to the Commercial Act.

Regarding the Myeong Taegyun Special Prosecutor Act, which also passed the Legislation and Judiciary Committee subcommittee that day, Yoo emphasized, "It is a malicious law that effectively targets all PPP members." The Special Prosecutor Act includes allegations that 'political broker' Myeong Taegyun and President Yoon Seok-yeol and his spouse were involved in illegal and false opinion polls used during the 20th presidential election and primary process.

At the same press conference, Jang Dong-hyuk also stated, "The Myeong Taegyun Special Prosecutor Act targets not only all PPP members but also includes prominent presidential candidates."