Yang Hyang-ja, "Concerns Over Speculative Capital Technology Leakage... Must Also Listen to Corporate Voices" Votes Against 3% Rule

"Where is the guarantee that foreign capital won't steal core technology?"
Remembering Hidis' 'LCD nightmare'

[Asia Economy Reporter Jeon Jin-young] Yang Hyang-ja, a Supreme Council member of the Democratic Party of Korea, voiced opposition on the 16th to the introduction of the separate election system for audit committee members and the 3% voting rights limitation for major shareholders, which are the biggest issues in the amendment to the Commercial Act. She said, “Where is the guarantee that foreign capital will not steal information related to core technologies?” She warned that if the influence of foreign speculative capital increases, concerns about technology leakage will inevitably grow. The Democratic Party held consecutive meetings with the business community on the 14th and 15th. The business sector expressed concerns that if the amendment passes, the influence of foreign speculative capital in the appointment process of audit committee members will increase, exposing management rights to threats.

[Image source=Yonhap News]

At the joint meeting of the Supreme Council and National Chairpersons held at the National Assembly that morning, Supreme Council member Yang said, “We must not make the mistake of viewing the technological hegemony war as a simple struggle.”

She pointed out, “It is naive to believe that executives who enter with the purpose of information theft will abide by confidentiality obligations. It is very likely that we won’t even know if technology and strategy leaks are occurring.”

She continued, “The board of directors, especially the audit committee, has access rights to all important company information for management supervision,” emphasizing, “The outside director recommended by speculative capital to Hyundai Motor Company was from a competing company, and the director brought in by speculative capital at KT&G openly refused to sign confidentiality agreements.”

She added, “We have a painful memory of Hidis. When a Chinese company gained management rights, it siphoned off technology and personnel, and eventually we lost the top position in the liquid crystal display (LCD) market?a nightmare memory.” The Chinese company BOE acquired Hidis, the LCD division of Hynix, at that time, receiving over 4,300 core technologies and subsequently filing for bankruptcy. BOE, which had no LCD production capacity, succeeded in mass-producing products from 2010 onward.

Supreme Council member Yang stated, “Competitors can easily approach disguised as general financial investors,” and noted, “Japan recently strengthened foreign investor share acquisition reporting to protect industrial technology.” She emphasized, “We must listen carefully when companies speak with one voice,” and stressed, “If there is even a small hole through which technology can leak, it must be thoroughly sealed without any gaps.”

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