People Power Party's Sudden Shift on Commercial Act; Democratic Party Suspects Delay Tactics, Vows to Pass Bill on July 3 Without Compromise

Democratic Party Rejects People Power Party's Proposal for Negotiations, Sticks to Schedule
Jin Sungjoon: "We Will Not Be Tied to Reaching an Agreement with the People Power Party"
Commercial Act Amendment Expected to Be Discussed in the Legislation and Judiciary Committee

The People Power Party has expressed a forward-looking stance on amending the Commercial Act and has raised the need for negotiations. However, the Democratic Party of Korea has decided to finalize the passage of the Commercial Act amendment bill by July 3.

Song Eonseok, floor leader of the People Power Party, is speaking at the party meeting held at the National Assembly on June 30, 2025. Photo by Kim Hyunmin

On July 1, Moon Geumjoo, floor spokesperson for the Democratic Party, told reporters, "We have set a goal to process the confirmation motion for Prime Minister-nominee Kim Minseok and bills including the Commercial Act on July 3."

Moon explained, "The floor leaders of both parties are scheduled to meet today, but the Democratic Party will maintain its position that sufficient deliberation should take place within the Legislation and Judiciary Committee." Previously, Song Eonseok, acting leader and floor leader of the People Power Party, had proposed a meeting with Kim Byungki, acting leader and floor leader of the Democratic Party.

Song stated, "If the Democratic Party pushes ahead unilaterally, it could result in damaging the companies that are the backbone of the economy, leading to a critically negative impact on the economy. Therefore, the floor leaders of both parties should meet to discuss alternatives to alleviate corporate concerns." The previous day, Song had shifted his earlier stance advocating for amendments to the Capital Markets Act, expressing a proactive willingness to support the Commercial Act amendment if a tax package and other measures were prepared.

However, the Democratic Party sees the People Power Party's proposal for negotiations as an attempt to buy time. Jin Sungjoon, chair of the Democratic Party's Policy Committee, said, "The Democratic Party will participate in the legislative review at the National Assembly in good faith, but we will not be bound by the need to reach an agreement with the People Power Party." Regarding concerns from the business community and others, Jin clarified that the party intends to address any issues arising after the implementation of the Commercial Act through related legislation, such as laws on breach of trust. In other words, the party will legislate first and supplement later. The Commercial Act amendment bill, led by Lee Jeongmoon, which is close to the Democratic Party's official position, has already been referred to the full session of the Legislation and Judiciary Committee.

The "KOSPI 5000 Committee," which led the discussion on the Commercial Act within the Democratic Party, is advocating not only for the codification of directors' fiduciary duties to shareholders and the introduction of electronic general meetings of shareholders, as included in the original Commercial Act, but also for the adoption of cumulative voting in the appointment of directors at large listed companies, increasing the number of audit committee members elected separately, and introducing the "3% rule," which limits the voting rights of the largest shareholder and their special affiliates to 3% when electing audit committee members. While the committee maintains that all five issues should be handled as a "package," it is open to the possibility of changes to some provisions in consideration of the positions of the government and business community.

Meanwhile, regarding the second supplementary budget bill currently being discussed in the Special Committee on Budget and Accounts and other committees, the Democratic Party explained, "We aim to reach an agreement and process it on July 3, but if it is delayed, it could be handled on July 4."