Lee Bok-hyun "Opposing the Reconsideration Right Exercise on Commercial Act Amendment Bill with 'Job' at Stake... Not Right to Return to Square One"

Maintaining Opposition to the Current Commercial Act Amendment
"Citing Ambiguous Expressions"
On the Homeplus Situation: "Inspection is Inevitable... Will Draft a Plan"

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), expressed opposition to the ruling party's proposal for the right to request reconsideration (veto power) on the amendment to the Commercial Act. He stated that he cannot agree with reverting efforts to enhance shareholder value back to square one.

Lee Bok-hyun, Governor of the Financial Supervisory Service, is delivering opening remarks at the "Open Forum for Building Governance of Coexistence between Companies and Shareholders" held at the Korea Economic Association in Yeouido, Seoul on the 13th. 2025.03.13 Photo by Yoon Dong-joo

On the 13th, during a back briefing following the "Open Forum for Building Governance for Corporate and Shareholder Coexistence," Governor Lee said, "After long efforts to enhance shareholder value, I cannot accept any decision that reverts this to the starting point," adding, "I oppose it even if it means risking my position."

Recently, the People Power Party announced that it would request the right to reconsider (veto power) from Acting President Choi Sang-mok regarding the amendment to the Commercial Act. Governor Lee emphasized, "The exercise of the right to reconsider has been made in cases that violated constitutional values," and questioned, "I doubt whether this case (the amendment to the Commercial Act) falls under that category."

He further explained, "Our government has put forward the resumption of short selling and enhancement of shareholder value as intentions to improve the capital market," adding, "Reverting to the starting point due to side effects is hardly productive."

He also stressed, "There are pros and cons in how various systems operate," and "Even if the amendment is made in an incomplete form, we need to consider how to minimize side effects."

However, he maintained his existing stance opposing the current form of the Commercial Act amendment, acknowledging that various side effects are inevitable. The amendment expands the duty of directors from the existing 'company' to 'company and shareholders' and includes provisions mandating electronic shareholder meetings for listed companies. He said, "Since the amendment contains ambiguous expressions, I have repeatedly stated my opposition to the passage of the current Commercial Act."

Regarding Homeplus, which has entered court receivership, he said, "We are collecting materials to verify facts related to the sale of unsecured bonds and parts sold to retail," adding, "I think inspections will be inevitable within a minimum scope, and we plan to draft a plan this week, report it to the Financial Services Commission, and take necessary measures."

The FSS is currently investigating 200 accounts related to major shareholders and stakeholders of Sambutogeon. He said, "We have been investigating quietly for a long time," adding, "There was considerable market confusion as it was a kind of theme stock related to major development projects, so we deployed significant investigative personnel." He emphasized, "Strict response to illegal trading is the principle."