Business Community Meets Ruling Party, Urges "Commercial Act Amendment Should Be Discussed Again as the Governing Party"

Ruling Party: "Commercial Act Amendment to Boost Stock Market... Will Address Issues as They Arise"

Regarding the amendment to the Commercial Act, which is scheduled to pass the plenary session this week, the business community has suggested that, now that the Democratic Party has become the ruling party, there should be another round of discussions at the National Assembly level. The Democratic Party has indicated that it intends to proceed with the passage of the amendment as planned, while suggesting that measures to minimize any adverse effects will be considered and supplemented later.

Yonhap News

At a meeting between the Democratic Party and economic organizations on the Commercial Act amendment, held on June 30 in the Democratic Party leader's conference room at the main building of the National Assembly in Yeouido, Park Iljun, Vice Chairman of the Korea Chamber of Commerce and Industry, stated, "Some parts of the Commercial Act amendment have already passed the National Assembly, so it could be said that parliamentary discussions have taken place. However, now that the Democratic Party is the ruling party, there is a need to have another opportunity for discussion."

Vice Chairman Park said, "The business community has no disagreement about revitalizing the stock market and creating a fair market, and we also believe that reflecting the duty of shareholder loyalty in the Commercial Act is one possible solution." However, he added, "As you well know, there must be measures to minimize the adverse effects of amending the Commercial Act."

He continued, "Examples include preventing exposure to the risk of frivolous lawsuits, addressing the widely raised concerns regarding the crime of breach of trust, incorporating into law the business judgment rule that has been established through judicial decisions, and considering mechanisms to ensure the protection of management rights."

He further stated, "Yesterday, the nominations for ministers of the relevant ministries responsible for the Commercial Act, such as the Ministry of Justice, the Ministry of Economy and Finance, and the Ministry of Trade, Industry and Energy, were announced. Through party-government consultations, I hope that the process of coordinating opinions with the ministers of the relevant ministries will demonstrate a continued effort to find ways to minimize adverse effects until the very end. If this is achieved, I believe that the economic growth policy of the people-sovereignty government, which aims for fair growth, will function even more effectively."

However, the Democratic Party's position is to proceed with the passage of the Commercial Act amendment first, and then address and supplement any adverse effects that may arise afterward. Jin Sungjoon, Chairman of the Democratic Party's Policy Committee, said, "We expect that the amendment of the Commercial Act will serve as an opportunity for our stock market to take off once again," adding, "If any issues of concern arise in the process, we are fully prepared to supplement and revise the system as needed."

Chairman Jin also stated, "Since the amendment to the Commercial Act has long been an issue raised for the advancement of the stock market and our capital market, I hope that we can now realize this task while also pooling our wisdom and efforts to minimize any adverse effects. As this may be the last policy meeting before the amendment is passed, I encourage you to candidly raise your concerns, and the policy experts here will give them full consideration."

Attending the meeting from the Democratic Party were Chairman Jin, Heo Young, Senior Deputy Floor Leader for Policy, Lee Jeongmoon, Senior Deputy Chair of the Policy Committee, Oh Gihyung, Chair of the Special Committee for the KOSPI 5000 Era, Kim Namgeun, Deputy Floor Leader for Public Welfare, Kim Hyunjung, Floor Spokesperson, and Lee Kangil, member of the National Policy Committee.

Representing the business community were Kim Changbeom, Vice Chairman of the Federation of Korean Industries, Vice Chairman Park, Lee Donggeun, Vice Chairman of the Korea Employers Federation, Oh Giwoong, Vice Chairman of the Korea Federation of SMEs, Lee Hojun, Vice Chairman of the Korea Federation of Mid-sized Enterprises, Jung Wooyong, Vice Chairman of the Korea Listed Companies Association, and Jang Seokmin, Executive Director of the Korea International Trade Association.