Lee Bok-hyun, head of the Financial Supervisory Service, said on the 13th that he would 'strongly oppose' the exercise of the veto right regarding the revision of the Commercial Act by Acting President and Minister of Economy and Finance Choi Sang-mok. This elicited sharp reactions from the People Power Party. There are interpretations that discord has emerged within the government and ruling party surrounding the revision of the Commercial Act.
Kweon Seong-dong, the floor leader of the People Power Party, pointedly criticized the chairperson's remarks when he met with reporters ahead of the National Assembly's plenary session that afternoon. He stated, 'It is inappropriate and incorrect for someone who is not a government member, like the head of the FSS, to make such remarks about a law that is not under their jurisdiction when the bill hasn't even passed yet.' He added, 'It is unfortunate that the habit of doing whatever one wants, which he had when he was a prosecutor, seems to surface even in this significant position as the head of the FSS. It must be pointed out.'
A ruling party member of the Legislative and Judiciary Committee also criticized, 'This is the first time I've seen a voice that completely contradicts the overall direction of the government.' In response to the point of 'discord between the government and the ruling party,' they added, 'The Minister of Economy and Finance and the government all think the same. It's just this director who is acting out.'
A member of the floor leadership also stated, 'It seems that he lacks the qualifications to be the head of the FSS.' He remarked, 'He has only been a prosecutor and has only been involved in supervising financial companies at the Financial Supervisory Service, so I think he has no idea how the revision of the Commercial Act will actually affect corporations in our country.' He continued, 'If the revision of the Commercial Act leads to a decrease in corporate competitiveness, it will be the small shareholders who are affected first.' He mentioned, 'We plan to request the veto right more actively from Acting President Choi.'
Earlier, this director met with reporters after an 'open discussion to build governance for the coexistence of corporations and shareholders' and stated, 'I cannot accept a decision-making process that rolls back discussions regarding shareholder value enhancement in any way.' Regarding the exercise of the veto on the revision of the Commercial Act, he said, 'I oppose it even at the cost of my position.' The veto should be exercised only when it contradicts clear constitutional values, and it is unclear if the revision of the Commercial Act meets that criterion. Given that the government has promoted policies to enhance shareholder value, it is stated that it cannot be reverted to square one due to concerns about side effects from the revision of the Commercial Act. He also remarked, 'We should think about minimizing side effects, not reverting to square one.'
The revised bill passed that day includes provisions to expand the 'duty of directors to act in good faith' from existing companies to 'companies and shareholders' and mandates that directors must protect the interests of all shareholders when performing their duties. In addition, public companies are required to hold electronic shareholder meetings alongside general meetings. The Democratic Party has led the revision of the Commercial Act, focusing on protecting small shareholders and addressing the 'Korea Discount.'
On the other hand, the government and ruling party oppose the revision of the Commercial Act, arguing that it will lead to abuse of lawsuits and increase the likelihood of hostile investments from global hedge funds. Instead, they have proposed a revision of the Capital Markets Act aimed at protecting small shareholders during mergers and acquisitions or physical divisions. They assert that 'pinpoint regulation' targeting listed companies can adequately protect small shareholders. The People Power Party opposed the revision of the Commercial Act as a party line that day.