This Is Why It's Definitely the 'Beopsawi'... Focus on Economic and Real Estate Issues

Yoon Ho-jung, Chairman of the National Assembly Judiciary Committee, is presiding over the plenary meeting of the National Assembly Legislation and Judiciary Committee on the 3rd. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Park Cheol-eung] The focus of the National Assembly is converging on the Legislation and Judiciary Committee (Law Committee). This is because not only issues related to prosecutorial reform such as the High-ranking Officials' Crime Investigation Agency (Gongsucheo), but also contentious economic bills where opposing views on 'fair economy' and 'corporate regulation' collide, all fall under the jurisdiction of the Law Committee. This appears to be one of the reasons why the ruling and opposition parties are unwilling to yield the position of the Law Committee chairperson.

According to the National Assembly on the 5th, there are 353 bills pending in the Law Committee. This is more than the 230 bills in the Industry, Trade, Energy, Small and Medium Venture Business Committee, 305 bills in the Land, Infrastructure and Transport Committee, and 321 bills in the Political Affairs Committee, which are economic-related standing committees.

In addition to bills related to institutions under its jurisdiction such as courts and prosecution, many bills related to corporate litigation are included. A representative example is the amendment to the Commercial Act, one of the 'three economic laws' promoted by the government and the ruling party. The government-proposed bill mainly includes the separate election of auditors and the multiple derivative suit system (a lawsuit by a parent company shareholder against a subsidiary executive), while the Democratic Party plans to discuss including the cumulative voting system contained in the bill proposed by Representative Park Yong-jin.

Regarding this, Kim Tae-nyeon, the floor leader of the Democratic Party, mentioned at a press briefing the day before, "During the National Assembly review process, we will listen to the opinions of many stakeholders such as business circles and civic groups. We are also conducting simulation work to verify whether the claims of the business community are factual."

Justice Party Representative Bae Jin-kyo also proposed an amendment to the Commercial Act on the 28th of last month, which includes the cumulative voting system along with the right of labor unions to file representative lawsuits and the appointment of worker representatives as outside directors. The business community's attention is inevitably focused on the Law Committee.

The Ministry of Justice has also announced legislation for the expansion of class action lawsuits and punitive damages. Already, Baek Hye-ryun, the ruling party's secretary of the Law Committee, has submitted a class action bill, and Oh Ki-hyung of the same party has proposed a punitive damages bill that caps damages at three times the amount of compensation or the amount of profit, whichever is greater.

On the other hand, People Power Party Representatives Chu Kyung-ho and Kwon Seong-dong have proposed amendments to the Commercial Act that include the introduction of subscription options for new shares and differential voting rights systems to defend management rights. It is a situation where spear and shield are confronting each other. The Serious Accident Corporate Punishment Act, proposed by Justice Party Representative Kang Eun-mi and supported by the Democratic Party, is also under the jurisdiction of the Law Committee.

Real estate issues also depend on the Law Committee. After bills such as the right to request contract renewal and the cap on monthly rent for jeonse and wolse (lease types), a bill to reduce commercial rent passed the plenary session after going through the Law Committee. In addition, Democratic Party Representative Lee Seong-man recently proposed an amendment to the Commercial Lease Protection Act to reduce rent by half during periods when business operations are restricted due to national disasters.

The Democratic Party proposed seven standing committee chair positions to the People Power Party, but the People Power Party insists on demanding the chairmanship of the Law Committee, so the ruling party's monopoly of standing committee chair positions continues.

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