Kwon Seong-dong Requests Veto on Commercial Act Amendment for National and Shareholder Interests

Kwon Seong-dong: "Unlisted Companies Forced into Endless Lawsuits and Management Rights Defense"
Opposition Party: "If Impeachment Motion Against Han Is Proposed, Will Discuss Successors for Moon Hyung-bae and Lee Mi-sun"

On the 31st, Kwon Seong-dong, floor leader of the People Power Party, described the amendment to the Commercial Act forcibly passed by the Democratic Party of Korea as "like wielding an axe in a surgery that requires a scalpel," and recommended that Acting President and Prime Minister Han Duck-soo exercise the right to request reconsideration (veto power).

At a briefing on current issues held at the National Assembly that afternoon, Floor Leader Kwon stated, "Amid the global tariff storm, now is the time to enhance market stability and reduce uncertainty, but the Democratic Party escalated economic turmoil by forcibly passing the amendment to the Commercial Act on the 13th without bipartisan agreement."

He continued, "Unreasonable split listings and physical divisions must be improved. Therefore, the ruling party and the government have been promoting amendments to the Capital Market Act to protect shareholders, receiving considerable support from shareholders and the business community alike. Nevertheless, Democratic Party leader Lee Jae-myung pushed through the amendment to the Commercial Act, which affects one million small and medium-sized enterprises and unlisted companies," he criticized.

Floor Leader Kwon pointed out that the reckless push for the amendment to the Commercial Act would lead unlisted companies into endless lawsuits and management rights defense, resulting in losses for shareholders and the market.

Requesting Acting President Han to exercise the veto power on the amendment to the Commercial Act, Floor Leader Kwon emphasized, "If the government exercises the veto power and the amendment is rejected, we will further protect minority shareholders through amendments to the Capital Market Act. I strongly urge Leader Lee to stop exacerbating confusion and cooperate in handling reasonable alternatives."

Regarding Financial Supervisory Service Governor Lee Bok-hyun's remarks, which appeared to oppose Acting President Han's exercise of veto power, Park Soo-min, spokesperson for the People Power Party floor, said, "I believe Governor Lee expressed an uncoordinated and abrupt position. Capital market reform is our stance. We requested the exercise of veto power because suddenly passing a fragmentary amendment to the Commercial Act could have side effects. We will take the lead in addressing the concerns and worries of the capital market."

Yonhap News

Meanwhile, Floor Leader Kwon stated that if the Democratic Party reintroduces an impeachment motion against Acting President Han, they will discuss the nomination of successors for Constitutional Court Justices Moon Hyung-bae and Lee Mi-sun, whose terms expire on the 18th of next month. Both justices were appointed by then-President Moon Jae-in in April 2019.

Floor Leader Kwon emphasized, "If, by any chance, the Democratic Party initiates impeachment against Acting President Han again for political reasons, the government and the ruling party will consult and reach a conclusion on how to respond."

He added, "It has been customary to submit a request for a hearing related to appointments about two months before the expiration of the Constitutional Court justices' terms. Acting President Han is currently undergoing impeachment proceedings, and under the judgment that the impeachment trial will soon be conducted with eight justices, it is presumed that he has not requested appointments for the two justices whose terms expire on April 18."

When a reporter pointed out that "just before the appointments of Constitutional Court candidates Ma Eun-hyuk, Jung Gye-seon, and Jo Han-chang last December, it was argued that the appointment of Constitutional Court justices is the authority of the head of state and that Acting President Han could not exercise it," Kwon responded, "The position had to change. At that time, I argued that 'none of the three appointments would be approved' and that 'the acting president does not have appointment authority.' However, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok appointed two of them during the acting period, and the Constitutional Court has been operating. It is correct to say that a consensus has been reached that the acting president can appoint Constitutional Court justices."

Regarding whether it is possible to appoint successors for Justices Moon and Lee without appointing candidate Ma, he said, "These are separate issues. Candidate Ma was unilaterally pushed through by the Democratic Party without bipartisan agreement and lacks the will to protect the constitutional identity of the Republic of Korea, which is liberal democracy. Appointing such a person as a justice of the Constitutional Court, the last bastion of constitutional protection, is tantamount to giving up on defending our constitutional order," he asserted.

However, Floor Leader Kwon asked for understanding, saying, "At this point, I cannot categorically say 'we will do this or that.' The priority is the impeachment trial verdict for the president, which is underway with eight justices of the Constitutional Court, and the trial has been concluded for nearly a month."