Examining the Subcommittee of the Legislation and Judiciary Committee Reviewing Commercial Law... Intense Legal Disputes Anticipated

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[Asia Economy Reporter Kiho Sung] The National Assembly's Legislation and Judiciary Committee, which is reviewing the amendment to the Commercial Act among the 'Economic Three Laws (Fair Trade Act, Financial Group Supervision Act, and Commercial Act Amendment)' promoted by the government and ruling party, is emerging as a battleground. The Commercial Act amendment is being criticized for containing elements that may be unconstitutional, and intense debates are expected to unfold starting from the Legislation and Judiciary Committee's Bill Review Subcommittee, where many legal experts are concentrated.

According to the National Assembly on the 3rd, the Bill Review Subcommittee 1 of the Legislation and Judiciary Committee, which reviews the Commercial Act amendment, consists of five members from the ruling Democratic Party and three members from the opposition People Power Party. Except for Democratic Party lawmaker Jongmin Kim and People Power Party lawmaker Sujin Jo, both former journalists, all other members are legal professionals, signaling fierce legal battles ahead.

Although Kim Jong-in, the emergency committee chairman of the People Power Party, showed a positive response to the 'Economic Three Laws,' academia particularly points out the potential unconstitutionality of the Commercial Act amendment. Wongeun Song, a visiting professor at Yonsei University, emphasized at the 5th Industrial Development Forum that "(in the case of the Commercial Act amendment) the separate appointment of audit committee members creates a devious director appointment system," and "there is a risk of constitutional violation due to infringement of property rights by restricting major shareholders' voting rights, and there is no overseas legislative precedent that simultaneously restricts the appointment voting rights of the largest shareholder while separately appointing audit committee members." Because of this, it is expected that the discussions in the Bill Review Subcommittee 1, where many legal professionals are concentrated, will become controversial.

Democratic Party lawmaker Kiheon Song and People Power Party lawmaker Doeup Kim, both former prosecutors, have served as party secretaries in the latter half of the 20th Legislation and Judiciary Committee and the first half of the 21st. In particular, during the 20th session, Song served as the chairman of Bill Review Subcommittee 1, and Kim as the opposition party secretary, engaging in discussions on the Commercial Act amendment, but the bill failed to pass. Both are expected to lead the discussions again during this bill review process.

Although Bill Review Subcommittee 1 is mainly composed of legal professionals, there are also members with economic backgrounds. Democratic Party lawmaker Yongmin Kim and People Power Party lawmaker Sangbeom Yoo, both former lawyers and prosecutors respectively, have financial experience; Kim served as a lawyer for Hyundai Securities and Daishin Securities and handled the financial sector at a law firm, while Yoo, a former chief prosecutor, served as head of the Financial and Tax Investigation Division 3 at the Seoul Central District Prosecutors' Office.

As the attacking members from both sides, Democratic Party lawmakers Jongmin Kim and Jumin Park, a member of the Lawyers for a Democratic Society (Minbyun), and People Power Party lawmaker Sujin Jo, all former journalists or legal activists, are expected to take the lead.

However, since the Legislation and Judiciary Committee is currently engaged in major discussions such as the controversy surrounding Justice Minister Choo Mi-ae and the High-ranking Officials' Crime Investigation Agency (PCA), it is anticipated that the bill review will not proceed immediately. A member of the Legislation and Judiciary Committee stated, "There are issues where the ruling and opposition parties are fiercely opposed, and regarding the Commercial Act amendment, there is a mood that various opinions need to be heard," adding, "Therefore, it will be difficult to have full-fledged discussions during the regular session."

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