[Exclusive] Democratic Party's 'Economic 3 Laws' TF & Kim Tae-nyeon Hold Private Meeting... "Based on Government Proposal"

Issue: '3% Rule' Likely to Undergo Minor Adjustments
"Concerns from Business Community Not Highly Realistic"

Kim Tae-nyeon, floor leader of the Democratic Party of Korea, is attending the party strategy meeting held at the National Assembly on the 10th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea has decided to discuss the government's proposal in the standing committees through the 'Economic 3 Acts (Commercial Act, Fair Trade Act, and Financial Group Integrated Supervision Act)' Task Force (TF) and the floor leadership meetings. Although various opinions have been collected so far, they judged that the possibility of concerns from the business community, such as attacks by overseas speculative capital, becoming a reality is low, and are now preparing for full-scale legislation.

On the 10th, a Democratic Party official said, "On the morning of the 9th, members of the Fair Economy 3 Acts TF and Floor Leader Kim Tae-nyeon held a closed meeting to discuss the TF's activities and judgments so far, as well as future legislative strategies," adding, "We decided on the basic direction to discuss the government's proposal in each standing committee." TF Chairman Yoo Dong-su mentioned at a public debate with the Korea Chamber of Commerce and Industry on the 3rd, "We have heard many opinions. We plan to hold the final debate and officially conclude the opinion-gathering process."

Since last month, the TF has continuously met with representatives and staff from the business community to listen to their opinions and reviewed whether to supplement the government proposal through internal simulation work. Now, they plan to finalize and discuss it with opposition lawmakers in the relevant standing committees, the Legislation and Judiciary Committee (Commercial Act) and the Political Affairs Committee, but it is explained that there will be no major changes to the basic framework. The Legislation and Judiciary Committee is expected to handle the amendment to the Commercial Act in the bill review subcommittee starting around the 16th.

A Democratic Party official said, "Many of the business community's concerns did not align with reality, so the basic judgment is that major changes are not necessary," adding, "Based on this, we will negotiate with the opposition." Another Democratic Party lawmaker previously said, "Major shareholders or owners tend to regard institutional investors and other shareholders as outsiders and do not consider them as shareholders."

The biggest issues are the separate election of audit committee members and the 3% voting rights restriction on major shareholders and related parties combined. Proposals have been made inside and outside the party to raise this to about 5%, to recognize voting rights individually without combining, or to impose a mandatory stock holding period to grant voting rights as a supplementary measure. There is also a proposal to completely separate audit committee members by excluding them from the board of directors altogether. However, for now, it is likely to be only minor adjustments.

Democratic Party Floor Leader Kim Tae-nyeon stated on the 3rd, "We do not take the business community's concerns lightly and are also seeking alternatives," and added, "The Democratic Party will smoothly handle the Fair Economy 3 Acts, which have been discussed for a long time, during this regular session of the National Assembly."

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