Lee Jae-myung "Will South Korea's Acting President Reject the Commercial Act?"

Lee Jae-myung, leader of the Democratic Party of Korea, on the 31st responded to Prime Minister Han Duck-soo, acting president, hinting at the use of the reexamination request right (veto power) regarding the amendment to the Commercial Act, saying, "Our capital market is boiling with distrust and frustration like this, yet will you still insist on using the veto power?"

Yonhap News

Through Facebook on the same day, Lee stated, "Recently, the announcement of a 3.6 trillion won paid-in capital increase by a certain listed company caused the company's stock price to drop by 13% in one day, resulting in significant losses for many retail investors."

He explained, "On the same day, the parent company's stock price also fell by more than 12%," adding, "However, today news came that the head of a certain group plans to gift shares of the parent company, whose stock price has declined, to their children."

He pointed out, "Since stock prices affect gift tax, there is a high possibility of reducing gift tax by gifting at the lowered stock price," and "There are even speculations that the money paid by the listed company to a company owned by the children as consideration for share transactions will become the source of the gift tax."

He continued, "This is not an uncommon occurrence in our capital market," emphasizing, "There is nothing to say against shareholders' criticism that 'the capital market is treated like a cash withdrawal machine.'"

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