Choi Sang-mok, the acting president and prime minister, as well as the Minister of Economy and Finance, is contemplating the revised commercial law bill that passed in the National Assembly on the 13th. As the People Power Party requested the exercise of its right to request reconsideration (veto), Acting Prime Minister Choi is expected to make a decision after consulting with relevant ministries, including the Ministry of Justice and the Financial Services Commission.
According to relevant ministries on the 13th, Acting Prime Minister Choi is not expected to immediately express a separate stance on the revised commercial law bill that passed in the National Assembly that day. It is reported that Choi will organize his position after reviewing the contents of the revised commercial law bill for several days.
A Ministry of Economy and Finance official said, "Acting Prime Minister Choi will decide after listening to the positions of the relevant ministries, including the Ministry of Justice and the Financial Services Commission," adding, "He is expected to clarify his stance sometime next week."
The revised commercial law bill expands the scope of the directors' duty of loyalty from "the company" to "the company and shareholders" and establishes the legal basis for electronic shareholders' meetings.
The Democratic Party has argued that the revised commercial law bill is a "remedy for undervaluation in the Korean stock market." They claim that when corporations make significant decisions such as mergers or divisions, decisions tend to favor major shareholders while disregarding the interests of minority shareholders.
On the other hand, the People Power Party expressed concerns, stating, "This bill is likely to subject normal corporate decision-making to litigation," and added, "Directors will find it challenging to make bold decisions for the company's future and to increase shareholder value." The People Power Party plans to recommend that Acting Prime Minister Choi exercise his veto.
However, the positions of relevant ministries and institutions regarding the revised commercial law bill are mixed. The Financial Services Commission holds the view that the capital markets law can be amended instead of the revised commercial law bill. The commission announced its direction for amending the capital markets law to strengthen the protection of general shareholders' interests in December of last year. Kim Byung-hwan, chair of the Financial Services Commission, noted at a press conference on the 24th of last month, "There are concerns from the business sector and corporations regarding the side effects of the revised commercial law bill, so I hope the National Assembly considers this sufficiently."
In contrast, Lee Bok-hyeon, head of the Financial Supervisory Service, has a negative stance on the veto of the revised commercial law bill. He remarked that "although the revised commercial law bill has various problems, from the economic team's view that has been striving to enhance shareholder value, making a decision to exercise the right of request for reconsideration and revert this back to square one is completely unacceptable." He further stated, "I am not in a position to recommend a veto; rather, I am in a position where I must oppose it at the risk of my job."
Meanwhile, the revised commercial law bill was passed in the National Assembly with 184 votes in favor, 91 against, and 4 abstentions. The Korea Chamber of Commerce and Industry, The Federation of Korean Industries, the Korea Enterprises Federation, and the Korea International Trade Association released a statement immediately after the bill passed, saying, "This will result in serious side effects for corporations and the Korean economy."