On the 20th, the Financial Supervisory Service (FSS) officially sent a letter to the Korea Economic Association (HanKyungHyup) proposing a public debate regarding the amendment to the Commercial Act. This move came just one day after Lee Bok-hyun, the head of the FSS, suggested a debate while stating that he would "oppose the exercise of the re-request right (veto power) on the Commercial Act amendment demanded by the business community at the risk of his position." However, insiders and outsiders in the industry assess that the possibility of this public debate taking place is low.
On the morning of the same day, the FSS announced that it had sent an official letter under the name of Director Lee Bok-hyun to HanKyungHyup, proposing to hold a public debate as soon as possible. In the letter, the FSS suggested, "Let us promptly discuss pressing issues in the capital market, including directors' duty of loyalty."
Previously, at a press briefing held at the FSS the day before, Director Lee said, "I will propose an open public debate to HanKyungHyup," adding, "Since HanKyungHyup represents the position of companies and is closely positioned, let us discuss policy and institutional aspects together." This statement came right after eight economic organizations, including the Korea Chamber of Commerce and Industry (KCCI) and HanKyungHyup, recommended that Acting President Choi Sang-mok exercise veto power over the amendment to the Commercial Act.
In particular, Director Lee emphasized that "(the veto target) applies to cases that violate constitutional order or are difficult to accept, but the Commercial Act issue is not such a case," stressing that the amendment to the Commercial Act is not subject to veto power. He also argued, "From an economic impact perspective, the (Commercial Act amendment) follows global standards." Regarding criticisms that statements related to the amendment to the Commercial Act centered on the National Assembly are overstepping their authority, he rebutted, saying, "It is also overstepping to tell the FSS whether to give opinions or not."
However, the likelihood of this public debate taking place appears low. HanKyungHyup has not issued an official position. Especially since the amendment to the Commercial Act has already passed the National Assembly and statements regarding the exercise of veto power are emerging, it is expected that the debate itself will not be easy to realize. Most economic organizations are reportedly taking a stance of closely monitoring the related situation going forward.
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