'Corporate Regulation 3 Laws'... An Unhearing National Assembly, an Unyielding Business Community

Son Kyung-sik, Chairman of the Korea Employers Federation, is delivering opening remarks at the 'KEF Chairman's Meeting' held on the 7th at Lotte Hotel in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

KCCI Chairman Meeting Held: "Please Hold Off on Corporate Regulation Bills"

[Asia Economy Reporter Kiho Sung] The business community has launched an all-out effort to block the three corporate regulation bills?the Commercial Act, the Fair Trade Act, and the Financial Group Supervision Act?pushed by the government and ruling party. On the 7th, the Korea Chamber of Commerce and Industry (KCCI) decided at a chairman meeting to undertake persuasion efforts targeting individual lawmakers reviewing the bills, including submitting a comprehensive petition. Additionally, top executives from major economic organizations held an urgent meeting that afternoon to seek countermeasures. This urgent move came after Lee Nak-yeon, leader of the Democratic Party of Korea, expressed his determination on the 6th to pass the three corporate regulation bills within this regular session of the National Assembly despite the business community's concerns, making a direct confrontation unavoidable.

On the same day, KCCI held a chairman meeting at the Lotte Hotel in Jung-gu, Seoul, and decided to prepare and submit a comprehensive petition regarding the corporate regulation bills scheduled to be presented to the National Assembly this month.

In his opening remarks, KCCI Chairman Sohn Kyung-shik urged, "We must improve regulations on the business environment and strengthen the economic structure to move toward a direction where both employment and wages improve," and called for a postponement of discussions on bills that recently impose burdens on companies. He emphasized, "Even before the COVID-19 pandemic, a high-wage, low-productivity structure had become entrenched, and industrial competitiveness has been weakened due to minimum wage increases and reduced working hours," adding, "It is concerning that bills imposing burdens on companies are being proposed in this regular session of the National Assembly."

Kwon Kyung-sik, Chairman of the Korea Employers Federation, is attending the 'KEF Chairman's Meeting' held at Lotte Hotel in Jung-gu, Seoul on the 7th, sharing opinions with the chairmen before the meeting. Photo by Kang Jin-hyung aymsdream@

Comprehensive Petition to Be Submitted to National Assembly This Month... Preparing to Persuade Lawmakers Reviewing Bills

Chairman Sohn specifically outlined the business community's concerns regarding the three corporate regulation bills and the amendment to the Labor Union and Labor Relations Adjustment Act (Labor Union Act) related to the ratification of the International Labour Organization (ILO) conventions. Regarding the amendment to the Commercial Act, which introduces separate appointment of audit committee members and a multiple derivative suit system, he pointed out, "Allowing foreign financial speculative capital and speculative forces to participate in the board of directors risks exposing technology and trade secrets." Regarding the amendment to the Fair Trade Act, he explained, "Raising the shareholding ratio of subsidiaries by holding companies from 20% to 30% imposes a very heavy management burden on major shareholders."

On the bills introducing class action lawsuits and punitive damages, he criticized, "There will be irreparable management losses caused by excessive lawsuits and planned litigation by black consumers and legal brokers, and companies may become passive in developing new technologies and products."

Business leaders attending the meeting also expressed concerns about the legislative discussions on over 200 corporate burden bills and pledged to jointly respond with economic organizations. Fourteen people attended the chairman meeting, including Lee In-yong, President of Samsung Electronics; Yoon Yeo-cheol, Vice Chairman of Hyundai Motor Company; and Kim Chang-beom, Vice Chairman of Hanwha Solutions.

After the meeting, Chairman Sohn told reporters, "Through today's meeting, we gathered companies' opinions on the corporate burden bills and decided to submit them to the National Assembly as soon as preparations are complete," adding, "Above all, it is important to build consensus that these bills negatively affect corporate management, so we plan to actively convey opinions to individual lawmakers reviewing the related bills." To this end, KCCI plans to actively present and negotiate the business community's position mainly through the relevant standing committees of the National Assembly and strengthen joint response activities with economic organizations on key issues.

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