Chairman Son Kyung-sik Visits National Assembly Political Affairs Committee: "Fair Trade Act Amendment Increases Corporate Burden"

Conveying Business Community Concerns Regarding the Fair Trade Act Amendment Proposal

[Image source=Yonhap News]

[Asia Economy Reporter Kim Ji-hee] The Korea Employers Federation visited Yoon Kwan-seok, Chairman of the National Assembly's Political Affairs Committee, on the 5th to convey the business community's concerns regarding the amendment to the Fair Trade Act.

On the same day, Son Kyung-sik, Chairman of the Korea Employers Federation, held a private meeting with Chairman Yoon at the National Assembly and stated, "Recently, numerous bills regulating corporate activities have been proposed, and in particular, there is significant concern among companies about the amendment to the Fair Trade Act currently pending in the Political Affairs Committee."

Chairman Son expressed concern, saying, "The amendment to the Fair Trade Act includes expanding the scope of companies subject to unfair internal transactions regulation, raising the mandatory shareholding ratio of subsidiaries by holding companies, and abolishing the exclusive prosecution rights of the Fair Trade Commission. If the law passes, it will increase the burden on companies."

He continued, "If the scope of companies subject to unfair internal transactions regulation expands, it could hinder the competitiveness of our companies that must survive in the global competitive era," and emphasized, "There are also concerns about defending management rights when selling shares to continue transactions between affiliates." He further pointed out, "Raising the mandatory shareholding ratio for subsidiaries by holding companies will also create difficulties by significantly increasing the funds required when companies establish or incorporate new subsidiaries."

Regarding the abolition of the Fair Trade Commission's exclusive prosecution rights, he explained, "An increase in frivolous prosecutions is expected, and during investigations of fair trade prosecution cases, separate investigations by the prosecution may also proceed, which will greatly restrict the business activities of the companies under investigation."

At the meeting, Chairman Son requested that the Political Affairs Committee fully consider the business community's position during the review and resolution process of the Fair Trade Act amendment bill.

Chairman Yoon responded, "Creating a business-friendly environment is a major goal and priority task of the government and ruling party," adding, "The contents of the bill have already been prepared considering some of the issues and concerns, and the bill review will continue while listening to the opinions of the opposition party and the business community."

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