Son Kyung-sik Meets Lee Nak-yeon: "Significant Adjustments Expected to the '3% Major Shareholder Rule'"

Meeting Held at Korea Employers Federation Hall on the Morning of the 6th

Lee Nak-yeon, leader of the Democratic Party of Korea, and Sohn Kyung-shik, chairman of the Korea Employers Federation, attended the Democratic Party-Korea Employers Federation meeting held on the 6th at the Korea Employers Federation in Baekbeom-ro, Mapo-gu, Seoul, and posed for a photo before the meeting began. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Ji-hee] On the 6th, Son Kyung-sik, chairman of the Korea Employers Federation (KEF), and other business leaders met with Lee Nak-yeon, leader of the Democratic Party of Korea, to exchange opinions on the 'Three Corporate Regulation Laws (amendments to the Commercial Act, the Fair Trade Act, and the Financial Group Supervision Act).' At this meeting, the business community repeatedly emphasized the need to ease the '3% major shareholder rule,' and Chairman Son expressed optimism, stating that "there will be considerable adjustments."

That morning at the KEF headquarters in Mapo-gu, Seoul, Chairman Son, along with Lee In-yong, President of Samsung Electronics; Gong Young-woon, President of Hyundai Motor Company; Jang Dong-hyun, President of SK Inc.; Hwang Hyun-sik, President of LG Uplus; Oh Seong-yeop, President of Lotte Holdings; and Kim Chang-beom, Vice Chairman of Hanwha Solutions, met with Leader Lee to convey the business community's concerns regarding the three corporate regulation laws.

In particular, Chairman Son actively emphasized the problems with the '3% major shareholder rule.' After a closed-door free discussion, Son told reporters, "Several legislative bills, including the three corporate regulation laws, are currently before the National Assembly," adding, "I conveyed concerns about several issues, including the most problematic '3% rule' under the Commercial Act." The amendment to the Commercial Act includes a provision for the separate election of audit committee members, which limits the voting rights of major shareholders to within 3% when electing audit committee members.

Chairman Son stressed, "I strongly insisted that this regulation must be changed," and added, "It is not only unreasonable but also makes it very difficult for companies as competitors could enter." The KEF has actively proposed to the government and ruling party that this regulation could pose a threat to management rights.

He further stated, "Leader Lee did not show a clear positive or negative reaction, but since there have been several discussions in the National Assembly, there will be considerable adjustments to the '3% rule,'" expressing a positive outlook by saying, "I believe it will be resolved within common sense."

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