The economic sector demanded an immediate halt to discussions on the commercial code amendment, which could cause confusion in corporate settings, and urged the promotion of amendments to the Capital Markets Act to enhance shareholder rights.
On the 23rd, eight economic organizations, including the Federation of Korean Industries, Korea Chamber of Commerce and Industry, Korea Federation of Small and Medium Enterprises, Korea Enterprises Federation, Korea International Trade Association, Korea Association of Middle Market Enterprises, Korea Listed Companies Association, and Korea Securities Dealers Association, issued a statement urging discussions on amending the Capital Markets Act.
The eight economic organizations noted, "Recently, our corporations are standing on the brink," adding, "Amid the weakening competitiveness of key industries, the search for new growth engines to secure the future is also faltering. The spread of protectionism and stagnant domestic demand threaten the survival of corporations." They further pointed out, "In a precarious crisis situation, amending the commercial code to expand the fiduciary duty of directors, require cumulative voting, and increase the separation of audit committee appointments would result in severe side effects for our economy and corporations."
The eight economic organizations asserted, "The commercial code amendment would lead to an excessive number of lawsuits against directors, threaten corporate management rights, and shrink investments and mergers and acquisitions (M&A) needed for discovering new growth engines, causing significant confusion in corporate settings," and stated, "Ultimately, the national economy will decline in value, and the impact will fall on the people and corporations alike."
The eight economic organizations also expressed, "Recently, there has been a growing voice in the National Assembly calling for the improvement of the Capital Markets Act instead of unwarranted amendments to the commercial code as a means to protect minority shareholder interests," adding, "The government and commercial law experts agree on amending the Capital Markets Act to prevent harm to minority shareholders but oppose amendments to the commercial code that have significant side effects on our economy." They also stated, "As there is consensus among the National Assembly, government, and the economic sector on amending the Capital Markets Act, we earnestly request that focus be directed to discussions on the Capital Markets Act instead of the commercial code."