Barun Law LLC to Hold Seminar on Commercial Act Amendments under the Lee Jaemyung Administration

Analysis of Key Issues in Expanding Directors' Duty of Loyalty to Shareholders

Barun Law LLC announced on July 1 that it will co-host a seminar with the Korea Venture Capital Association on July 14, under the theme "Amendments to the Commercial Act under the New Administration - Focusing on Directors' Duty of Loyalty to Shareholders."

The Commercial Act amendment bill promoted by the new administration aims to enhance corporate governance transparency and strengthen shareholder rights. Key elements include expanding the scope of directors' duty of loyalty to shareholders, mandating cumulative voting, expanding the scope of separate election for audit committee members, and requiring the simultaneous holding of electronic general meetings of shareholders.

Lee Sanghoon, a professor at Kyungpook National University Law School, will lead the seminar. Professor Lee is regarded as an authority on corporate law in Korea. In 2008, he pointed out that the prevailing practice of excluding shareholders from directors' duty of loyalty was a structural problem in Korean corporate law. Over the past 17 years, he has published more than 30 papers through related research.

Lee Eungse, head of Barun's Venture Business Support Center and attorney (Judicial Research and Training Institute, 17th class), stated, "If the scope of directors' duty of loyalty is expanded to include shareholders, there is expected to be an increase in cases where minority shareholders demand dividend distribution or pursue civil and criminal liability against directors." He added, "In the absence of clearly established standards for the duty of loyalty, establishing a preemptive response system, such as reorganizing the principles of board operation, can minimize legal risks."

The seminar will be held from 3:00 p.m. to 5:00 p.m. for two hours in the main conference room on the 51st floor of the Trade Tower in Gangnam-gu. After Professor Lee Sanghoon's keynote lecture, there will be a Q&A session. Advance registration is available on the Barun Law LLC website.

Lee Donghoon, managing partner at Barun Law LLC (Judicial Research and Training Institute, 23rd class), stated, "We will provide insightful analysis by experts on the concrete interpretation and practical implications of the new administration's Commercial Act amendment bill," and added, "We look forward to the active participation of corporate legal professionals and industry stakeholders."