Fair Economy 3 Laws, Experts Question "Are They Necessary in an Economic Crisis?"

[Asia Economy Reporter Kiho Sung] Experts have raised doubts about the necessity of the "Fair Economy 3 Acts (Fair Trade Act, Commercial Act, Financial Group Supervision Act)" being promoted by the government and ruling party amid the economic crisis. They emphasized the need for more cautious and extensive discussions during the legislative process, warning that repeated regulatory policies could become redundant layers of regulation. On the other hand, voices also emerged saying that this legislation could protect minority shareholders and prevent the arbitrary actions of major shareholders.

Jung Wooyong, Vice Chairman of Policy at the Korea Listed Companies Association, pointed out during the designated discussion at the 5th Industrial Development Forum held at COEX in Seoul on the morning of the 10th, "Timing is important for policies and legislation," adding, "I question whether this law should be pushed through now."

Regarding the amendment to the derivative lawsuit system, he emphasized, "Samsung Electronics can meet the requirements for a derivative lawsuit with just 30 billion KRW across seven subsidiaries," and questioned, "Is there a minority shareholder who can mobilize 30 billion KRW? This will only jeopardize corporate management rights."

Professor Hong Daesik of Sogang University commented on the Fair Trade Act amendment, saying, "There may be academically necessary regulations, but the method of introduction itself seems like redundant regulation," and urged cautious legislation, stating, "Once government regulations are enacted, they tend not to be withdrawn, and if the policy effects are not evident, more regulations are imposed to solve the issues."

Choo Moongap, Head of the Small and Medium Business Administration, said, "Considering the characteristics of our country's economic structure, small and medium enterprises rely heavily on large corporations," adding, "If large corporations worry about defending management rights, it will negatively affect small and medium enterprises as well."

On the other hand, there were also opinions that the bill is necessary for corporate soundness. Professor Park Sangin of Seoul National University emphasized, "There are criticisms that the Fair Economy 3 Acts aim to turn listed companies into public enterprises, but since they are open to many shareholders, they should be regarded as 'public companies'." He added, "Protecting the majority of shareholders and resolving conflicts of interest from a public interest perspective can enhance corporate value," stressing, "We should not think 'it is bad because major shareholders are uncomfortable.'"

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