Passage of Amendments to Commercial Act and Fair Trade Act at Cabinet Meeting... KCCI Expresses Concern Over Significant Increase in Corporate Burden

"Business Sector Opinions Must Be Reflected in Future National Assembly Discussions"

[Asia Economy Reporter Kim Ji-hee] The Korea Employers Federation (KEF) expressed regret on the 25th regarding the final approval of the proposed amendments to the Commercial Act and the Fair Trade Act by the Cabinet, stating that "it is very unfortunate that the joint opinions submitted by the business community during the legislative notice period were not reflected."

On the same day, KEF commented on the "Cabinet Approval of the Commercial Act and Fair Trade Act Amendments," saying, "This amendment includes many provisions that are excessively burdensome compared to global standards, such as the separate appointment of audit committee members under the Commercial Act and the regulation of private interest exploitation under the Fair Trade Act." They added, "This will significantly increase management burdens through excessive regulations on governance such as director appointments, rampant filing of collusion-related complaints, and contraction of transactions between companies, which will negatively impact the global competitiveness of our companies."

KEF also stated that the timing of the proposed amendments to the Commercial Act and Fair Trade Act is inappropriate. They said, "In this difficult situation where the unprecedented infectious disease crisis has caused an economic downturn with an uncertain duration, such regulatory strengthening further dampens corporate investment incentives," and "Ultimately, it will also have a negative effect on economic recovery."

They appealed, "We hope that during the upcoming National Assembly discussions, the voices of companies will be reflected so that the regulatory burden on our companies does not become heavier than that of foreign countries, and that regulatory burdens will be significantly eased."

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