Democratic Party Stock Market Revitalization TF to Be Expanded, Boosting Support for Lee's Pledges

Democratic Party Considers Upgrading Stock Market Task Force to Permanent Committee
Lee's Pledge to Usher in the KOSPI 5000 Era to Be Addressed Together

The Democratic Party of Korea is currently discussing a plan to expand and reorganize its stock market revitalization task force (TF) into a permanent committee dedicated to capital markets. With President Lee Jaemyung having declared his intention to usher in the KOSPI 5000 era, this move is expected to add momentum to the fulfillment of his presidential campaign pledge.

A key official from the Democratic Party's TF stated on the 12th, "We are considering a framework that the party can implement," adding, "The committee will play a role in reviewing necessary institutional reforms across the entire capital market." The TF, led by Democratic Party lawmaker Oh Ki-hyung, is currently responsible for activities aimed at revitalizing the capital market, including amendments to the Commercial Act.

The expanded organization is expected to also take on the role of the "KOSPI 5000 Era Committee," which operated under President Lee's campaign committee during his candidacy, thereby accelerating the achievement of stock market-related pledges. Another key official explained, "We are planning to form a committee that will encompass the Commercial Act, the Capital Markets Act, and issues related to unfair trading." Discussions are also expected to cover the reorganization of capital market supervisory bodies such as the Financial Supervisory Service, as well as the inflow of retirement pension funds into the stock market. Another official added, "Since the standing committees handling these pledges include the Legislation and Judiciary Committee, the Political Affairs Committee, and the Environment and Labor Committee, there is a need for coordination and integration at the party level, which is why we are considering moving toward a committee structure."

Previously, President Lee pledged to create a fair and orderly stock market, promising to amend the Commercial Act, introduce a "one-strike-out" rule for unfair trading practices such as stock price manipulation, and seek inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index.

However, the establishment of a permanent committee within the party requires approval from the Supreme Council, so active discussions within the party are expected to be possible only after the floor leader election concludes on the 13th, likely sometime next week. A TF official commented, "We are also consulting with the Secretary-General," and added, "The level of participation from lawmakers is an issue, but I expect the direction (of the initiative) will be decided by next week."

Meanwhile, the TF held a press conference on the 5th and announced plans to push forward a stronger amendment to the Commercial Act. The main points include codifying directors' duty of loyalty to shareholders, introducing cumulative voting for the appointment of directors in large listed companies, increasing the number of audit committee members who are elected separately, and maintaining the party's existing position on introducing electronic general meetings of shareholders. However, the plan now excludes the introduction of electronic general meetings, moves up the implementation timeline to immediate effect, and adds an amendment to the 3% rule.