Democratic Party Races to Pass Commercial Act Amendment and Supplementary Budget... 'D-Day is July 3'

With Three Days Left Until the End of the Extraordinary Session,
Democratic Party Ramps Up Efforts for D-Day
People Power Party Protests "Unilateral Schedule Notification"

As the June extraordinary session of the National Assembly draws to a close, the Democratic Party is accelerating efforts to pass the proposed amendment to the Commercial Act, which would explicitly stipulate directors' fiduciary duty to shareholders, as well as the supplementary budget bill. While the party plans to continue negotiations with the opposition, it maintains that both bills must be processed at the National Assembly plenary session on July 3.

Moon Jinseok, Senior Deputy Floor Leader of the Democratic Party, stated on the 30th, "We plan to pass the Commercial Act amendment during this week's extraordinary session." Previously, National Assembly Speaker Woo Wonshik had indicated that a plenary session would be held on July 3, the day before the end of the June session, urging bipartisan consultations regarding the confirmation of Kim Minseok as Prime Minister nominee.

Jin Sungjun, the Policy Committee Chair of the Democratic Party, is holding a meeting with the vice presidents of six economic organizations at the National Assembly on the 30th to gather opinions from the business community regarding the proposed amendment to the Commercial Act. Attendees of this meeting included Park Iljun, Executive Vice President of the Korea Chamber of Commerce and Industry; Kim Changbeom, Executive Vice President of the Korea Economic Association; Lee Donggeun, Executive Vice President of the Korea Employers Federation; Jang Seokmin, Executive Director of the Korea International Trade Association; Oh Kiwoong, Executive Vice President of the Korea Federation of Small and Medium Business; Lee Hojun, Executive Vice President of the Korea Association of Mid-sized Companies; and Jung Wooyoung, Vice President of the Korea Listed Companies Association. 2025.6.30 Photo by Kim Hyunmin

The Democratic Party has reintroduced the Commercial Act amendment following the inauguration of the Lee Jaemyung administration. The amendment retains the original provisions, including: explicitly defining directors' fiduciary duty to shareholders; introducing cumulative voting in the appointment of directors at large listed companies; increasing the number of directors serving as audit committee members elected separately; and introducing electronic general shareholders' meetings. However, the implementation timeline has been changed so that the amendment takes effect immediately upon promulgation (except for the provision on electronic shareholders' meetings). Additionally, the so-called "3% rule," which limits the voting rights of the largest shareholder and related parties to a combined 3% when electing audit committee members, has been added.

The version that passed the National Assembly under the Yoon Sukyeol administration included only two provisions: explicitly defining directors' fiduciary duty to shareholders and introducing electronic shareholders' meetings. However, it was blocked by the president's right to request reconsideration (veto).

Kim Hyunjung, Democratic Party Floor Spokesperson, said, "Any additional provisions will be discussed in the Legislation and Judiciary Committee."

The business community, concerned about the potential for excessive litigation, is calling for supplementary legislation, such as easing criminal liability for breach of duty. While the Democratic Party says it will consider these concerns, such measures are unlikely to be included in the Commercial Act amendment to be processed at this week's plenary session.

Meanwhile, the Democratic Party plans to push ahead rapidly with the supplementary budget bill, which amounts to 3.05 trillion won. The party intends to complete the comprehensive interpellation on the supplementary budget in a single day, immediately convene a subcommittee to begin deliberations, and finalize the bill on July 3. In this regard, Park Hyungsoo, the People Power Party's secretary on the Special Committee on Budget and Accounts, argued at a full committee meeting, "(Han Byungdo, the Democratic Party's chair of the Special Committee on Budget and Accounts) unilaterally announced the schedule." He insisted, "Today's proceedings should be halted, and the session adjourned so that the schedule can be discussed between the ruling and opposition party secretaries."