Han Jeongae: "Speculative Demand in Real Estate Calming... Will Proceed with Commercial Act Amendment on Treasury Share Cancellation"

Han Jeongae, Policy Committee Chair of the Democratic Party of Korea, commented on November 14 regarding the October 15 real estate measures, stating, "There are some signs that speculative demand is calming down to some extent." However, she clarified that tax reforms and similar measures are not currently under consideration. She also reaffirmed her commitment to passing the amendment to the Commercial Act, which centers on the cancellation of treasury shares.

During an interview with SBS Radio that day, Han explained, "The October 15 real estate measures were aimed at calming the speculative demand currently present in the market." She added, "Since only about a month has passed, it may be a bit premature to say that the market has stabilized or not. I think we need to observe the situation a bit longer."

Regarding tax reform and other measures, she said, "It's not that we are completely ruling them out, but at this stage, we are not considering them yet. Since the market is stabilizing, I don't think now is the time to discuss those details." However, she left open the possibility of considering such measures if the situation changes. Han stated, "If the market situation deteriorates, the government will have no choice but to take action in some way."

On the so-called third amendment to the Commercial Act, which includes the mandatory cancellation of treasury shares, she expressed her determination to see it through. However, she indicated flexibility regarding the use of treasury shares for employee compensation or employee stock ownership plans. On the Commercial Act amendment, Han said, "Minority shareholders are now genuinely experiencing shareholder returns in a variety of ways, so I think it is appropriate to proceed."

Jeongae Han, Policy Committee Chair of the Democratic Party of Korea Yonhap News

원본보기 아이콘

Regarding opposition from the business community, which argues that there are no means to defend management rights, Han criticized, "For management to claim that canceling treasury shares is about defending management rights is a completely different issue, as cancellation is a matter of shareholder returns." She added, "We are also considering other measures that could transparently help defend management rights." Furthermore, she stated, "We are open to the use of treasury shares for employee compensation or employee stock ownership plans, in addition to the cancellation of treasury shares."

On the issue of extending the statutory retirement age, she said, "I think it would be good if we could at least submit a bill." Han answered "yes" when asked whether she would support changing the seniority-based pay system to facilitate retirement age extension. She explained, "If the retirement age is extended, the wage system will change depending on each company's circumstances, but it is not easy to assume that wage system reform is impossible. It is better to keep options open so that necessary measures can be taken."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.