Korea Employers Federation's Final Appeal: "Please Postpone the Enforcement of the Commercial Act Amendment for Over One Year"

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation (KEF) requested on the 9th that the National Assembly postpone the enforcement of the amended Commercial Act, which includes provisions such as the separate appointment of audit committee members, by more than one year after the bill was passed in the plenary session.

In a statement released immediately after the bill's passage, KEF said, "The amended Commercial Act, which shakes the foundation of corporate governance systems, including the separate appointment of audit committee members and the multiple derivative suit system, has been confirmed by passing the National Assembly plenary session," adding, "Since most of the issues persistently requested jointly by the entire business community were hardly reflected, the business community cannot help but express deep concern and regret once again."

It continued, "Although a 3% individual voting right threshold for the largest shareholders and related parties was recognized in exercising voting rights for appointing audit committee members, in situations where foreign funds or competing forces can secure more than 20% of voting rights through share splitting, the defensive rights of companies are virtually neutralized."

Furthermore, it stated, "Companies facing the appointment of new audit committee members early next year are plunged into great confusion, not knowing how to respond," and "Therefore, we request that the enforcement date be postponed by more than one year to allow companies sufficient time to prepare, and that a supplementary measure be legislated in this extraordinary session to protect our companies from foreign speculative forces by requiring a minimum shareholding period of at least one year for exercising voting rights when separately appointing audit committee members."

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