The Democratic Party of Korea KOSPI 5000 special committee on the 22nd urged the ruling and opposition leadership to swiftly handle the third Commercial Act amendment, centered on mandatory cancellation of treasury shares. As the ruling party leadership designated judicial reform bills such as the special court for insurrection cases as priorities, making year-end passage of the third Commercial Act amendment uncertain, the committee publicly called for expedited action.
The Democratic Party KOSPI 5000 special committee held a press conference at the National Assembly's briefing room that day, saying, "We began earnest discussions in July on the third Commercial Act amendment to prevent the abuse of treasury shares, and we have also prepared directions for institutional improvement by gathering opinions from various stakeholders," adding, "But the bill's handling is taking longer than expected." It continued, "We urge the Legislation and Judiciary Committee and the ruling and opposition leadership to pass the third Commercial Act amendment as soon as possible."
Oh Ki-hyeong, the committee chairperson, said, "We aimed to pass it this year, but out of frustration over whether that is realistically possible, we decided to state our position publicly."
Earlier, the committee introduced the "third Commercial Act amendment," which would require newly acquired treasury shares to be canceled within one year and existing treasury shares to be canceled within one year and six months. While allowing exceptions for business purposes such as employee compensation or the introduction of new technologies, it would still require companies to prepare a "treasury share holding and disposition plan," obtain approval from the general shareholders' meeting, and protect the rights and interests of small shareholders.
The committee warned that prolonged delays could undermine market confidence in the policy. After the briefing, lawmaker Oh met with reporters and said, "If this year passes, the market will ask when it will be done afterward," adding, "We will answer that question responsibly and deliver results." Oh said, "We are in continuous communication and persuasion with the floor leadership, the policy committee, and the chair of the Legislation and Judiciary Committee."
As for why the bill's handling is delayed, responses to the opposition's filibuster and coordination over business community demands have been cited. Previously, business groups met with Democratic Party leadership and asked that the grace period for canceling existing treasury shares be extended from six months to one year.
Lawmaker Lee Kang-il said, "It is true that the Commercial Act's passage faces serious difficulties because of the opposition's schedule to filibuster even livelihood bills." He added, "The grace period issue (for mandatory cancellation of treasury shares) is a matter we have already narrowed since the summer," and said, "I question whether we should further discuss a bill to expand what had already been narrowed."
Regarding the business community's request to extend the grace period, lawmaker Oh drew a line, saying, "When the special committee met with the eight economic groups, and (recently) when party leadership did as well, they received such proposals," adding, "The law will be made as a result of internal persuasion and debate." He continued, "If delays continue and add-on arguments pile up, that would mean not pursuing reform of Korea's capital market," and said, "We have been building trust over the past six months, and I do not agree with moving in a direction that spoils that."