Song Eon-seok, the floor leader of the People Power Party, criticized that the bill to amend the Commercial Act pushed by the Democratic Party of Korea would infringe upon the stable management of corporations. He also warned that if the bill passes the National Assembly, the 'KOSPI 5000 era' mentioned by President Lee Jae-myung would become impossible.
On the 25th, the floor leader met with the executive vice presidents of economic organizations at the National Assembly and said, "Recently, the Democratic Party is pushing the bill to amend the Commercial Act, which was discarded under the right of re-demand, with rough tactics," adding, "The bill to amend the Commercial Act is not expected to be based on a healthy KOSPI 5000 in the real economy."
He emphasized, "The Lee Jae-myung government is stimulating expectations of the public and individual investors with the plausible slogan of a KOSPI 5000 era," stating, "However, in reality, it poses a significant risk of shaking the foundations of the capital market and infringing upon the stable management of corporations."
The floor leader stated, "If the bill to amend the Commercial Act passes, the capital market is likely to be suppressed in good investment and productive competition and will be a target for foreign speculative capital attacks surrounding corporate management rights," adding, "Corporations will spend significantly more resources on defending management rights than on long-term investments for growth."
Instead of amending the Commercial Act, he suggested amending the Capital Markets Act as an alternative. The floor leader explained, "(The Capital Markets Act amendment) is a bill focused on protecting the actual rights of individual investors in corporate mergers or partitioning and on providing a foundation for corporations to maintain long-term competitiveness," further noting, "(The bill to amend the Commercial Act) poses a high risk of individual investors incurring losses in a volatile market."
Representatives from the Federation of Korean Industries, Korea Chamber of Commerce and Industry, Korea Enterprises Federation, Korea International Trade Association, Federation of Middle Market Enterprises of Korea (FDMEK), and Korea Federation of Small and Medium Enterprises participated in the meeting. Economic organizations reportedly conveyed their concerns regarding the bill to amend the Commercial Act and the "yellow envelope law" during the closed meeting.