The so-called "third amendment to the Commercial Act," which mandates the retirement of treasury shares held by companies, passed the plenary session of the National Assembly on the 25th, led by the ruling party.
In the afternoon, the National Assembly held a plenary session and passed the alternative partial amendment bill to the Commercial Act containing these provisions, with 175 votes in favor and 1 abstention out of 176 lawmakers present.
The amendment stipulates, in principle, that when a company acquires its own shares, it must retire them within one year, and that a fine of up to 50 million won will be imposed if this is violated. However, exceptions can be granted with the approval of the general meeting of shareholders when treasury shares are used for purposes such as compensation for executives and employees or employee stock ownership plans.
The People Power Party, when the Commercial Act amendment bill was placed on the plenary agenda the previous day, applied for an unlimited debate (filibuster) in an attempt to block it. However, the filibuster ended after 24 hours following a motion to end the debate by the broader pro-government bloc, and in the subsequent vote, the amendment to the Commercial Act cleared the National Assembly, led by the ruling party.
Meanwhile, one of the Democratic Party of Korea's so-called "three judicial reform bills" (the Crime of Distorting the Law Act, the Supreme Court Justice Expansion Act, and the Constitutional Complaint Against Court Decisions Act), namely the Crime of Distorting the Law Act (an amendment to the Criminal Act), was placed on the plenary agenda. The bill stipulates that a judge or prosecutor who intentionally distorts the law or fabricates facts in the course of trial proceedings will be subject to imprisonment for up to 10 years.
However, the Democratic Party revised parts of the bill after concerns about its unconstitutionality were raised not only by the opposition but also by civil society. After a closed-door general meeting of Democratic Party lawmakers at the National Assembly, Democratic Party floor spokesperson Baek Seungah told reporters, "The Crime of Distorting the Law Act has been revised from the original draft," adding, "The amendment will apply only to criminal cases, and additional clarity has been provided for each item to minimize the risk of unconstitutionality."
The People Power Party launched another filibuster against the Democratic Party's three judicial reform bills. Representative Cho Baesook of the People Power Party took the floor as the first speaker. As a result, the Crime of Distorting the Law Act is expected to be put to a vote on the afternoon of the 26th, after 24 hours have elapsed.
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