Park Yong-man: "Are we going to catch everything by casting a net to catch a sick chicken?" Democratic Party: "We will listen to voices from the field"

Park Yong-man-Democratic Party Fair Economy TF Meeting
Park Yong-man "Advanced economies resolve issues through norms rather than laws... Need to review side effects companies can endure"
Democratic Party continues gathering business opinions until the 15th

[Asia Economy Reporter Jeon Jinyoung] Park Yongman, Chairman of the Korea Chamber of Commerce and Industry, requested the ruling party to review the side effects of the 'Fair Economy 3 Acts (Commercial Act, Fair Trade Act, Financial Group Supervision Act)'.

[Image source=Yonhap News]

On the same day, at a meeting with the Democratic Party's Fair Economy Task Force (TF) held at the Chamber of Commerce building in Jung-gu, Seoul, Chairman Park said, "I hope that through discussions, we can fully convey each other's concerns and solve the problems."

He emphasized, "I hope we consider whether these regulations are absolutely necessary, and if so, to what extent they are needed," adding, "We also need to consider whether the issue is with some companies or the entire corporate sector." Chairman Park appealed, "Companies have made many efforts to improve. Considering this, please reconsider the regulations," and warned, "If you throw a wide net at everyone just to catch a sick chicken among some companies, everyone will suffer."

He continued, "Please think about whether this is truly the solution," and added, "Advanced economies resolve issues through norms rather than laws. Solving everything by law is excessive."

Chairman Park also requested, "Please review what the actual side effects are and whether companies can bear them."

Yoo Dongsoo, chairman of the Democratic Party's Fair Economy TF, responded, "The Fair Economy 3 Acts have been discussed extensively since the 20th National Assembly," affirming that the principles remain unchanged, "We have also conducted considerable reviews."

Yoo said, "Of course, laws are not omnipotent. It is important that they work effectively on the ground," adding, "However, we need to review based on the government’s submitted proposal. We will listen carefully to voices from the field and consider any overlooked aspects."

Attending the meeting were Chairman Yoo and Fair Economy TF members Kim Byungwook, Baek Hyeryun, Oh Gihyung, Hong Seongguk, Lee Yonguk, and Song Kiheon.

From the Korea Chamber of Commerce and Industry, Chairman Park, Executive Vice Chairman Woo Taehee, Executive Director Park Jonggap, Managing Director Lee Kyungsang, and Director Lim Jin of SGI participated to convey the business community’s position. The business sector expressed concerns about the introduction of the separate election system for audit committee members in the amendment to the Commercial Act, the so-called '3% rule' limiting major shareholders’ voting rights to 3%, and the 'multiple derivative suit system' allowing parent company shareholders to claim damages from subsidiary executives who commit illegal acts. They argue these could restrict the company’s right to defense.

The Democratic Party is also open to some possible amendments. On the 6th, party leader Lee Nakyeon, during a meeting with Sohn Kyungshik, Chairman of the Korea Employers Federation, stated, "I think it is unwise to create openings for foreign hedge funds to target us." Yang Hyangja, a Supreme Council member, also emphasized regarding the contentious '3% rule,' "We must pool wisdom to protect our companies from speculative capital."

The Democratic Party TF plans to continue gathering opinions from the business community until the 15th. On the afternoon of the same day, they will hold a policy meeting with six economic organizations including the Korea Employers Federation, Korea Federation of Small and Medium Business, and Korea Federation of Medium-sized Enterprises. On the 15th, the Democratic Research Institute, the party’s think tank, will hold a meeting with the business community to collect opinions.

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