"Concerns Over Foreign Capital Taking Over Management Rights"
On July 28, members of the People Power Party (PPP) who belong to the National Assembly Legislation and Judiciary Committee expressed regret over the passage of the "Stronger Commercial Act Amendment" led by the Democratic Party of Korea. They criticized the move, stating that, amid growing external uncertainties such as negotiations with the United States and tariff talks, the additional amendment to the Commercial Act is a form of self-destruction.
PPP lawmakers Jang Donghyuk, Kwak Gyutaek, and Cho Baesook, all members of the Legislation and Judiciary Committee, held a press conference at the National Assembly on the same day. They stated, "The Democratic Party unilaterally passed the provisions that the business community had been concerned about, only a few days after the previous Commercial Act amendment was passed."
On this day, the Democratic Party pushed the Commercial Act amendment through the first subcommittee for bill review of the Legislation and Judiciary Committee, while PPP lawmakers had walked out. The amendment mandates cumulative voting for large listed companies with assets of 2 trillion won or more and expands the separate election of audit committee members. The PPP had insisted that further amendments should be discussed after observing the implementation of already passed amendments, such as the 3% rule.
Representative Jang stated, "Introducing cumulative voting or expanding the separate election of audit committee members increases the risk of management rights being taken over by foreign capital." He added, "We submitted a bill with supplementary measures, but there was no discussion on this at all."
Jang further commented, "While tariff negotiations are not proceeding properly and we are facing external threats, such as the possibility of missiles being launched, we are also self-destructing internally by further amending the Commercial Act, raising corporate taxes, and attempting to pass the Yellow Envelope Act." He warned, "The situation in countries like Venezuela, where companies have fled abroad, could soon become our own reality."
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