Song Eonseok Criticizes Ruling Party's Push for Commercial Law Amendment: "This Is Not a Healthy KOSPI 5000"

Song Criticizes Democratic Party's "Forcible Push" for Commercial Law Amendment at Meeting with Economic Groups
Economic Organizations Express Concerns Over Commercial Law Amendment and Yellow Envelope Act

Song Eonseok, floor leader of the People Power Party, criticized the Democratic Party's vision of a "KOSPI 5000 era" on June 25, stating, "It will not be a 'healthy KOSPI 5000' based on the real economy." He also argued that the commercial law amendment, which the Democratic Party is once again pushing for, is a highly dangerous bill that could undermine stable corporate management.

Song met with the executive vice presidents of the six major economic organizations at the National Assembly that afternoon, expressing concern that "the Democratic Party is once again forcefully pushing for the commercial law amendment, which was previously scrapped after a presidential veto." The meeting was attended by vice presidents from the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea Employers Federation, the Korea International Trade Association, the Korea Federation of SMEs, and the Korea Federation of Middle Market Enterprises.

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Song stated, "With the start of the Lee Jaemyung administration, the slogan of a 'KOSPI 5000 era' is raising expectations among the public and individual investors. However, if the commercial law amendment promoted by the Democratic Party passes, our capital market could see a significant decline in good-faith investment and productive competition, and there is a high likelihood that domestic companies will become targets of attacks by foreign speculative capital seeking control."

He continued, "Of course, it would be truly desirable if the fundamentals of the Korean economy improved, competitiveness was strengthened, and the KOSPI 5000 era arrived as a result. I also hope for this outcome. However, the reality is that this bill could shake the very foundation of the capital market."

He added, "The People Power Party has already proposed an amendment to the Capital Markets Act to protect individual investors and enhance shareholder value. This bill focuses on providing substantive protection for individual investors' rights during corporate restructuring processes, such as mergers or physical spin-offs, and on establishing a foundation for companies to maintain long-term competitiveness."

Kim Changgeun, executive vice president of the Federation of Korean Industries, said, "As our economy is currently passing through a dark tunnel, we ask the National Assembly to make institutional efforts to revive the economy. We also hope that the supplementary budget will be processed quickly to inject some vitality into people's livelihoods."

According to Choi Sujin, floor spokesperson for the People Power Party, the six economic organizations expressed particular concern during the closed-door meeting about the commercial law amendment and the so-called Yellow Envelope Act.

Choi stated, "This is not just a problem for large corporations. The vice presidents said that small and medium-sized enterprises are also affected by these laws (the commercial law amendment and the Yellow Envelope Act), that all companies are struggling with these bills, and that there is no way out."

She added, "If there are problems, they said that it would be possible to sufficiently protect minority shareholders by amending the lower-level Capital Markets Act, and that touching the commercial law itself would be extremely difficult in terms of the business environment."