[Reporter’s Notebook] The Higher 'Lee Jaemyung Barrier': Does the Business Community Have a 'Persuasion Card'?

Lee Pushes Strong Amendment to the Commercial Act
Business Community Needs New Persuasion Strategies

"It's a double-edged sword."

A business community insider made this remark to a reporter regarding Lee Jaemyung, the Democratic Party candidate running for the next presidential election. The prevailing view in the business sector is that Lee has a distinctly dual nature. During his tenure as mayor of Seongnam from 2014 to 2018 and as governor of Gyeonggi Province from 2018 to 2021, he collaborated with local companies on numerous regional projects. Major companies such as Naver and Doosan Construction were among those that partnered with Lee. Some voices expect that, if Lee comes to power, he will be sympathetic to the difficulties faced by businesses. On the other hand, there are also considerable concerns that, because he is well aware of corporate weaknesses, he may exert strong pressure on companies.

The mention of Lee's duality was prompted by his recent visit to the Korea Financial Investment Association, where he raised the issue of a "stronger" amendment to the Commercial Act. The core of his proposal is to introduce a "one-strike-out" rule for companies that disrupt the stock market, such as through stock price manipulation. He strongly argued for the renewed push of a Commercial Act amendment that includes this provision. Achieving a stock index of 5,000 points, which he pledged as a campaign promise, would require energizing companies, but businesses are opposed to the amendment of the Commercial Act.

He met face-to-face with Lee Jayong, chairman of Samsung Electronics, and visited artificial intelligence (AI) companies in succession, signaling a "rightward shift." However, as he proposed a stronger amendment to the Commercial Act to win over retail investors, the business community's concerns have only deepened.

Does the business community have any cards to persuade Lee? Because Lee is well-versed in corporate affairs, the barriers for the business sector to block the burdensome amendment to the Commercial Act have become even higher. It would not be an exaggeration to say that it has become difficult to change the stance of Lee and the opposition with ordinary logic and arguments. As the June 3, 2025, election draws closer, it is highly likely that more provisions will be added to the amendment and Lee's campaign pledges will become even sharper.

The business community has summarized its opposition to the amendment into three main reasons. First, they point out that expanding the scope of directors' proportional interests from "the company" to "the company and shareholders" could significantly restrict the management activities of directors and companies. Second, they are concerned that this change could expose directors and companies to criminal charges such as breach of duty by shareholders or to indiscriminate lawsuits, resulting in "judicial risks." Third, they believe that it could hinder companies' bold management, negatively affecting the discovery of new growth engines, investment, and mergers and acquisitions. The business community has consistently repeated these arguments ever since the opposition first raised the issue of amending the Commercial Act. As a result, their statements no longer feel new whenever they are made.

Now, things must change. Simply repeating the same arguments could amount to "preaching to the deaf." The urgent task is to find more detailed and attention-grabbing "persuasion cards."