Meeting with Yeo, Park Yong-man says "Regulation is not the only solution, the 3% rule must be abolished"

Sangui and Kyoongchong Hold Policy Meeting with the Democratic Party on Corporate Regulation Laws Including Amendments to the Commercial Act and Fair Trade Act

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, along with members of the Democratic Party's Fair Economy Task Force, are attending the 'KCCI-Democratic Party Fair Economy Task Force Policy Meeting' held on the 14th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, exchanging opinions. Photo by Kang Jin-hyung aymsdream@

[Asia Economy reporters Changhwan Lee and Dongwoo Lee] Park Yong-man, chairman of the Korea Chamber of Commerce and Industry (KCCI), met with lawmakers from the Democratic Party of Korea to request revisions and supplements to the three corporate regulation laws being promoted by the government and ruling party: the Commercial Act, the Fair Trade Act amendments, and the Financial Group Supervision Act.

Chairman Park particularly argued for the effective repeal of the proposal to limit the voting rights of major shareholders to 3% when appointing audit committee members, stating that this would severely threaten the management rights of Korean companies from overseas speculative capital.

In his opening remarks at the 'Fair Economy Task Force (TF) Policy Meeting' held on the morning of the 14th at the KCCI in Jung-gu, Seoul, Park said, "I welcome the Democratic Party’s acceptance of the business community’s suggestions and the start of the Fair Economy TF," but added, "Regulation alone is not always the answer regarding the amendments to the Commercial Act and the Fair Trade Act."

He then asked for three dimensions of consideration during the TF’s future activities. He explained, "The foremost consideration is whether regulation is truly necessary and to what extent it is needed. We need to consider whether the cause for regulation lies with some companies or the entire corporate sector, and also what improvement efforts companies have made so far, and based on that, whether such regulation is necessary."

The second consideration is about problem-solving methods and alternatives. Park emphasized, "Even if some companies have issues, we need to think about whether the solution is necessarily through law. As economies advance, problems are solved by establishing norms higher than the law."

This is interpreted as a demand for the effective repeal of some of the most controversial proposed amendments to the Commercial Act, such as the separate election of audit committee members and the 3% rule. These measures are being promoted to prevent excessive abuse of power by major shareholders, but Chairman Park suggests not creating laws unnecessarily and instead fostering norms where companies autonomously address problems.

Lastly, he pointed out that if the law is amended despite opposition from the business community, efforts should be made to minimize side effects.

After the opening remarks, in a closed-door meeting, the KCCI and the Democratic Party reportedly showed sharp disagreements over key issues in the amendments to the Commercial Act and Fair Trade Act, including the 3% rule, separate election of audit committee members, and abolition of the exclusive prosecution system.

The Democratic Party, planning to pass the bill during this regular session of the National Assembly at all costs, insisted on maintaining the existing bill in broad terms, while the KCCI reportedly demanded the repeal or significant revision of some sensitive issues, including the 3% rule.

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