People Power Party to Proactively Review Commercial Act Amendment... Will Also Pursue Tax Reform Package (Update)

"Concerns Over Excessive Regulation in Democratic Party's Commercial Act Amendment"
"Incentives Needed for Both Companies and Investors"

On June 30, the People Power Party announced that it would take a forward-looking approach to reviewing the proposed amendment to the Commercial Act, which the party had previously opposed as its official stance. The party explained that it believes there are limitations to protecting shareholders with only the Capital Markets Act.

Song Eonseok, floor leader of the People Power Party, told reporters after a general meeting of lawmakers held at the National Assembly on this day, "We have decided to proactively review the proposed amendment to the Commercial Act in light of recent shareholder rights violations that occurred during the paid-in capital increase processes of certain companies, as well as changes in market conditions."

Song Eonseok, floor leader of the People Power Party, is speaking at the party meeting held at the National Assembly on the 30th. 2025.6.30 Photo by Kim Hyunmin

However, Floor Leader Song stated, "The strengthened version of the Commercial Act amendment being unilaterally pushed by the Democratic Party could act as excessive regulation on private companies," and argued, "Along with the amendment to the Commercial Act, we need to pursue a package that includes tax reforms providing practical incentives for both companies and investors."

Floor Leader Song emphasized, "What is needed is not simply stronger regulation, but a comprehensive approach to restoring market trust and enhancing corporate competitiveness," adding, "We will continue to discuss the specific direction of the amendment and related policy measures."

He reiterated, "Rather than merely strengthening regulations, a comprehensive approach is necessary to restore market trust and enhance corporate competitiveness," and said, "We will continue consultations on the specific direction of the amendment and supplementary policy measures."

Park Sumin, chief secretary to the floor leader and a member of the People Power Party, added, "Recent trends in the capital market have made us feel that the previously reviewed Capital Markets Act is insufficient," and said, "It is time to comprehensively review a better amendment to the Commercial Act and a package for capital market value-up."

Representative Park also stated, "There are concerns that a stronger amendment to the Commercial Act would only increase the stick without the carrot," and added, "A new era in which both companies and the capital market can win-win will open only when both carrots and sticks are used together."