Son Kyung-sik Appeals to Ruling Party: "We Ask the National Assembly to Support Our Companies"

Sohn Kyung-shik, Chairman of the Korea Employers Federation (center). / Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kiho Sung] Sohn Kyung-shik, Chairman of the Korea Employers Federation, appealed to the government and ruling party, which are promoting the three corporate regulation laws, saying, "I hope the National Assembly will support our companies."

Chairman Sohn made these remarks on the 14th at the Korea Employers Federation-Democratic Party Fair Economy TF policy meeting held at the Federation's headquarters in Mapo-gu, Seoul.

He said, "Our companies have devoted their utmost efforts to economic development, creating jobs and raising wages and labor welfare levels. Although there have been occasional criticisms regarding transparency and ethics in the course of managing companies, government regulations on corporate governance and fair trade have been continuously strengthened, and companies have evolved in line with the global paradigm, now reaching a level recognized internationally," he emphasized.

He continued, "Of course, if companies violate laws or commit unfair practices, they must receive corresponding sanctions. However, if regulations that preemptively and fundamentally restrict management or business are imposed, it becomes difficult for our companies to operate properly," he explained.

Chairman Sohn identified seven key issues that companies are most concerned about: ▲strengthening regulations on the appointment of audit committee members ▲introduction of multiple derivative lawsuits ▲relaxation of the six-month holding requirement for exercising minority shareholder rights in listed companies ▲abolition of exclusive prosecution rights ▲expansion of internal transaction regulations ▲raising the mandatory shareholding ratio of subsidiaries by holding companies ▲and enactment of the Financial Group Supervision Act. He added, "In addition, many companies have expressed concerns about strengthening disclosure of overseas affiliates and introducing regulations on information exchange activities."

He particularly emphasized concerns about the separate appointment of audit committee members and strengthening of the 3% rule, stating, "Our companies are most worried about these. Small and medium-sized enterprises and mid-sized companies, which have weak judicial response capabilities and capital strength, are appealing that they could be shaken in management due to attacks by large external forces and excessive litigation by minority shareholders."

In response, Yoo Dong-soo, Senior Deputy Chairman of the Democratic Party Policy Committee, said, "I understand there are many worries and concerns about the Fair Economy 3 Laws. However, these bills have been reviewed and considered for a long time since the 20th National Assembly."

He added, "We consider these bills as ones that must be processed in this regular session of the National Assembly. Rather than saying 'no' or 'it's difficult,' if reasonable alternatives are presented, we will listen carefully and consider them rationally."

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