Since the inauguration of the Lee Jae-myung administration, discussions on the legislative amendments to commercial law and the yellow envelope law have intensified, with six economic organizations expressing concerns to the ruling party. In response, the Democratic Party of Korea said, "We will discuss additional measures to supplement it."
On the 25th, the Democratic Party of Korea held a closed-door meeting with six economic organizations (Korea Chamber of Commerce and Industry, Korea Federation of Small and Medium Enterprises, Korea Enterprises Federation, The Federation of Korean Industries, Korea International Trade Association, and the Korea Federation of Small and Medium Enterprises) to listen to the business community's opinions on economic legislation, including the commercial law amendment and the yellow envelope law.
Immediately after the meeting, Kim Hyun-jeong, the floor spokesperson, noted, "Generally, the economic organizations expressed that the domestic market situation and export situation are not good, and it would be great if the government could listen well to the difficulties faced by corporations," and added, "In particular, they hope to overcome the rising concerns regarding semiconductors, steel, and logistics costs together."
Additionally, it was mentioned that they wish to change the regulatory approach in new technology fields to a negative regulation method and that it would be good to promote infrastructure investment significantly.
It was further said that small and medium-sized enterprises and small business owners have high expectations for the new government and hope that the bills related to corporations pending in the National Assembly could be processed quickly, starting with those that are common between the ruling and opposition parties.
The business community also conveyed concerns regarding the commercial law amendment and the yellow envelope law. Kim, the floor spokesperson, said, "The economic organizations stated that if the commercial law amendment aligns with global standards, it would enable them to respond to the competitiveness with other companies worldwide."
In this regard, Kim Nam-geun, the deputy floor representative who attended the meeting, explained, "The commercial law amendment applies to large corporations with assets of 2 trillion won or more. We are trying to set a grace period for the implementation of the cumulative voting system, the separate election of audit committee members, and the mandatory electronic shareholder meeting. It has been stated that the composition of independent directors would be applied differently based on the size of corporations, reflecting the burdens on small and medium-sized enterprises in the bill."
Additionally, the deputy representative noted, "Large corporations have clarified the principles of management decisions, but corporations are concerned, saying, 'Isn't that not the case with the prosecution?'" and added, "We agreed to continue discussing issues regarding breach of trust and management rights defense if the commercial law passes."
The commercial law amendment primarily aims to expand the scope of directors' duty of loyalty from 'the company' to 'the company and shareholders' and mandates that listed companies hold electronic shareholder meetings alongside general meetings. Furthermore, it includes a stance to also add the 'gradual expansion of separate election of audit committee members' and 'activation of cumulative voting', while restricting major shareholders from exercising voting rights exceeding 3% of the total issued shares when appointing auditors or audit committee members, known as the 3% rule.
Regarding the yellow envelope law, both sides agreed on the need for additional negotiations. The deputy representative added, "There were opinions that, due to differences between the bills submitted in the 21st and 22nd National Assemblies, we should discuss how to adjust them."
The core of the yellow envelope law is to strengthen the liability of primary contractors for subcontract workers and to limit corporations' claims for damages against striking workers. It also includes provisions to expand the scope of union disputes to strengthen negotiation rights. This is a campaign promise from President Lee Jae-myung.
Additionally, the business community proposed that the ruling party engage in domestic vacation campaigns, expand support for renewable energy, and prepare support measures in response to restructuring or closures of existing industries (such as petrochemicals and steel).
The deputy representative stated, "In the previous government, there was no government response to the difficulties faced by existing industries," and added, "The business community is encouraged by the president's intention to focus on and work to overcome local difficulties and suggested that incentives be provided for the closure of some facilities related to existing industries."
The Democratic Party of Korea emphasized its commitment to actively support corporations for economic recovery. Earlier in the opening remarks of the meeting, Kim Byeong-ki, the acting chairman and floor leader of the Democratic Party of Korea, stated, "I am confident that the government, National Assembly, and corporations must work together as one to overcome this national crisis," adding, "Corporations are the main players in economic recovery and growth. The government and National Assembly must support them through policies and legislation to ensure corporations can have confidence in future growth."