Six Economic Organizations Gather to Discuss Issues of the Commercial Act Amendment Proposal

Hosted by Yoon Sang-hyun of the United Future Party... Six Domestic Economic Organizations Including the Sangjang Association Participate

[Asia Economy Reporter Minwoo Lee] Six economic organizations, including the Korea Listed Companies Association, are holding a forum to point out the problems of the proposed amendments to the Commercial Act.

On the 14th, the Korea Listed Companies Association announced that it will hold a forum titled "What is the problem with the Commercial Act amendment that shakes management rights and blocks jobs?" on the 16th at the 3rd floor of the Federation of Korean Industries Conference Center in Yeouido, Seoul. The forum is co-hosted by Representative Yoon Chang-hyun of the United Future Party and the Korea Corporate Law Research Institute, and organized by six organizations including the Korea Listed Companies Association, the Federation of Korean Industries, the Korea Federation of Small and Medium Business, the Korea Employers Federation, the Korea Association of Medium Enterprises, and the KOSDAQ Association.

The forum will focus on discussing the problems of the Commercial Act amendment proposed by the Ministry of Justice on the 10th of last month. The amendment includes significant strengthening of corporate governance regulations 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. It is argued that companies already facing survival crises due to the COVID-19 pandemic will face even greater difficulties. Representative Yoon's side plans to seek directions for legal amendments based on the discussions at the forum.

The forum will begin with an opening address by Representative Yoon and a welcome speech by Jung Gu-yong, chairman of the Korea Listed Companies Association. Then, Lee Hye-mi, a prosecutor from the Commercial Law Division of the Ministry of Justice, will explain the purpose and details of the government's proposed Commercial Act amendment. Following this, Professor Kwon Jae-yeol of Kyung Hee University Law School, who is in charge of the keynote presentation, will cover the main issues of the amendment. Discussants will include Professor Shin Hyun-han of Yonsei University's Business Administration Department, Yang Man-sik, dean of Dankook University Law School, and Chu Moon-gap, head of the Economic Policy Division of the Korea Federation of Small and Medium Business.

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