The Korea Federation of Small and Medium Enterprises expressed "deep concern" regarding the passage of the amendment to the Commercial Act on the 13th, which expanded the scope of fiduciary duties for directors to include shareholders.
KBIZ noted in a commentary that "the current Korean economy is in a negative outlook due to a combination of internal and external crises" and emphasized that "in such crises, it is crucial for corporations to have an environment where they can make swift and efficient decisions. However, this amendment to the Commercial Act could lead to conflicts of interest in the decision-making process of directors, significantly increasing management uncertainty."
It further emphasized that "especially for small and medium enterprises that lack dedicated legal organizations and personnel, there is a high risk of being unprotected against management interference from global institutions and funds" and "as a result, resources for overcoming crises and growth could be diverted to defending management rights, leading to a weakening of corporate competitiveness."
KBIZ also stated, "While we agree on the need to protect minority shareholders, this amendment to the Commercial Act may have more side effects than anticipated." It continued, "We request a re-evaluation of the amendment passed on the 13th by the acting president and urge cooperation among the National Assembly, government, and economic sectors to create a more in-depth discussion platform."