Kwon Yeong-se demands withdrawal of Commercial Code revision to protect South Korean businesses

Chairperson Kwon Yeong-se of the People Power Party said on the 13th that if the opposition party forcibly processes a revision bill to expand 'the duty of care for directors,' he will propose the government invoke its right to request reconsideration and urged an immediate withdrawal of the attempt to process the bill.

Chairperson Kwon noted at the emergency response meeting held at the National Assembly that morning, "If the Democratic Party unilaterally passes the bill to amend the Commercial Act today, the People Power Party will immediately propose invoking the right to request reconsideration to protect our corporations." They plan to establish 'disapproval' as their party line and participate in opposition debates.

Previously, the National Assembly's Legislation and Judiciary Committee passed the revision bill for the Commercial Act under the leadership of the opposition party. The core of the bill is to expand the target of 'the duty of care for directors' from companies to shareholders and to mandate 'electronic shareholders' meetings.' The Democratic Party was scheduled to process it forcibly in the plenary session on the 27th of last month, but Chairman Woo requested negotiations among the ruling and opposition parties, delaying the motion.

He pointed out that "the Korea Chamber of Commerce and Industry has repeatedly made it clear that if the revision bill is implemented, there are concerns that it may harm the long-term competitiveness of corporations due to worries about hindering investment and research and development. Yet, what is the reason the Democratic Party ignores the voices from the field?"

He stressed that if the revision bill is implemented, it could lead to side effects such as a dampening of the management rights of domestic corporations. Chairperson Kwon remarked, "The possibility that enterprises in South Korea could become targets for global corporate raiders will likely increase due to the revision bill," and asked, "In a situation where management rights are under threat, which corporation would venture into new businesses?" According to the Korea Economic Association, the number of domestic corporations subjected to attacks by activist funds surged from 3 in 2017 to 49 in 2022 and 77 in 2023.

Chairperson Kwon stated, "The Democratic Party is trying to destroy the entrepreneurial spirit of South Korea. While Representative Lee Jae-myung claims to speak for K-NVIDIA, it is fundamentally impossible under the economic order the Democratic Party is pushing. I urge the Democratic Party to retract policies that are ruining the economy now."

The People Power Party criticized the yellow envelope law (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) and the banking law, calling them 'anti-corporation' regarding the 20 livelihood agendas the opposition party aims to pursue.

Policy Committee Chair Kim Sang-hoon noted, "Regarding the 20 livelihood agendas and 60 policy agendas announced by the Democratic Party yesterday, many economists and industry experts express concern about the possibility of promoting 'anti-corporate policies' that do not benefit the public and the state."

He mentioned, "The yellow envelope law, which limits a company's right to claim damages for illegal strikes, has been included in the agenda. Many experts are concerned that the yellow envelope law could create lawlessness in the business field as an anti-corporate bill." He added, "The banking law, which intends to legally regulate the additional charges infringing on the autonomy of the financial market, has also been included, all of which are considered 'corporation strangling' policies with potential side effects."

He urged, "The Democratic Party, as the primary opposition party, should prepare practical measures for economic growth and job creation and participate in developing reasonable alternatives."