Economic Organizations Hold Debate on 'What Are the Issues with the Commercial Act Amendment?'

Hosted by Representative Yoon Chang-hyun and 6 Organizations Including the Federation of Korean Industries

[Asia Economy Reporter Dongwoo Lee] Major economic organizations will gather in one place to point out the problems of the Commercial Act amendment proposed by the government and seek alternatives.

According to the Federation of Korean Industries (FKI) on the 14th, a forum titled "The Commercial Act Amendment That Shakes Management Rights and Blocks Jobs, What Is the Problem?" hosted by Rep. Yoon Chang-hyun of the United Future Party and the Korea Corporate Law Research Institute, and organized by six economic organizations including the FKI, will be held at 1:30 PM on the 16th at the Emerald Room on the 3rd floor of the FKI Conference Center.

This forum will discuss the Commercial Act amendment, which the Ministry of Justice has been announcing for legislation since the 10th of last month. The amendment includes significantly strengthened regulations on corporate governance, such as the introduction of a multiple derivative lawsuit system, separate election of audit committee members, and a 3% cap on major shareholders' voting rights.

Amid the survival crisis faced by companies due to the COVID-19 pandemic, concerns about this amendment have been raised mainly by businesspeople, academia, and experts.

Rep. Yoon plans to hold the forum jointly with the Korea Corporate Law Research Institute (Chairman Choi Joon-sun, Honorary Professor at Sungkyunkwan University School of Law) to gather opinions from various sectors and reflect them in the National Assembly's bill review. Based on the collected opinions, they aim to seek a direction for legal amendments that will help Korean companies overcome the crisis and contribute to future investment and job creation through stable management rights.

The forum will begin with an opening address by Rep. Yoon, followed by a welcome speech by Jung Goo-yong, Chairman of the Korea Listed Companies Association. Then, Prosecutor Lee Hye-mi from the Commercial Law Division of the Ministry of Justice will explain the purpose and details of the government's Commercial Act amendment. Afterward, Professor Kwon Jae-yeol of Kyung Hee University School of Law, who is in charge of the keynote presentation, will address the main issues of the amendment.

Panelists include academic experts such as Professor Shin Hyun-han of Yonsei University’s Department of Business Administration and Dean Yang Man-sik of Dankook University College of Law. Additionally, Choo Moon-gap, Head of the Economic Policy Headquarters at the Korea Federation of SMEs, will convey the difficulties experienced by active businesspeople through the discussion.

Meanwhile, the event is organized by the Federation of Korean Industries, Korea Federation of SMEs, KOSDAQ Association, Korea Employers Federation, Korea Listed Companies Association, and Korea Federation of Medium-sized Enterprises.

This content was produced with the assistance of AI translation services.