DP considers tweaking Commercial Act amendments to 'respect concerns of the business community'

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DP considers tweaking Commercial Act amendments to 'respect concerns of the business community'

Published: 29 Nov. 2024, 16:23

JIN EUN-SOO
[email protected]

Democratic Party Rep. Jin Sung-joon, head of the party's policy committee, speaks during a conference on Friday regarding revisions to the Commercial Act. [YONHAP]

The Democratic Party said Friday that revisions to the Commercial Act will proceed, though some adjustments will be made to address strong opposition from the business community.

“The party's stance is to respect the concerns of the business community and find ways to address their challenges or provide support through ongoing dialogue,” Democratic Party Rep. Jin Sung-joon, head of the party's policy committee, said during a meeting Friday.

The Democratic Party met with leaders from Korea's business organizations and companies to mediate differences in opinions regarding the party's push to make amendments to the Commercial Act that extend the responsibilities of boards of directors to better protect minority shareholders.

The business community has opposed the idea, raising concerns that the amendment would put companies at risk of being sued and attacked by speculative funds abroad, which would further pressure Korean companies amid not-so-favorable economic conditions.

“Regulations on corporate governance have already been implemented when there were revisions to Commercial Act and Fair Trade Act in 2020,” said Korea Chamber of Commerce and Industry (KCCI) Vice Chairman Park Il-joon at the meeting.

“It is true, there are mounting concerns from the business circle that revisions to the Commercial Act are being discussed again in just four years.”

Park cited experts who said “promotion policy for industry is more necessary than regulation, from the national profit point of view, and raises the fundamental competitiveness of the country's economy.”

The Democratic Party plans to complete the Commercial Act revision this year.

The Friday meeting was attended by 11 members of the Democratic Party as well as executives from KCCI, Korea Enterprises Federation and Federation of Middle Market Enterprises of Korea among others.

Park Seung-hee, president of Samsung Electronics and Lee Hyung-hee, president of SK Group were also among participants from the conglomerates.

BY JIN EUN-SOO [[email protected]]