The Center for Free Enterprise urged a full review of the amendment to the 'Act on Testimony and Appraisal at the National Assembly (National Assembly Testimony and Appraisal Act),' which passed the National Assembly on the 17th, expressing concerns that corporate secrets might be leaked and business executives could be 'summoned en masse' to the National Assembly.
The amendment to the National Assembly Testimony and Appraisal Act was passed in the National Assembly's plenary session, led by the Democratic Party of Korea, on the 28th of last month. It contains provisions disallowing corporations from refusing requests to submit documents or for business executives to appear as witnesses or for appraisal, citing reasons such as personal information protection or trade secret protection. Additionally, it expands the scope of witnesses subject to accompanying orders from the current 'state audit and national investigation' to 'important agenda deliberations and hearings.'
The Center for Free Enterprise noted, "Already, due to the legislature's 'indiscriminate demand for materials,' not only administrative agencies but also corporations and major industry associations are under considerable pressure," adding, "If the amendment to the National Assembly Testimony and Appraisal Act passes, there is a possibility that the core secrets of corporations could be leaked externally through the political arena, resulting in a decline in global competitiveness."
Furthermore, it said, "There is significant concern that the repeated mass summoning of business executives, criticized every year during state audits, may become a year-round norm," and questioned, "Is it reasonable to have top management vacate their management sites for an entire day just to answer one or two questions, the receipt of which is uncertain?"
The Center for Free Enterprise stated, "The business community is already openly hoping for a full reassessment of the National Assembly Testimony and Appraisal Act," and noted that "the American Chamber of Commerce in Korea (AMCHAM) has also expressed concerns about this act." The center further requested, "We hope the government and the National Assembly will pool their wisdom to improve the amendment to the National Assembly Testimony and Appraisal Act in a more prudent manner."