DP proposes debate on Commercial Act amid business opposition

[Anchor]

There is controversy surrounding the 'Commercial Act amendment' that the Democratic Party is promoting.

As companies strongly oppose it, claiming it hinders their management activities, DP Leader Lee Jae-myung suggested holding a public debate to find a reasonable solution.

Reporter Kim Min-cheol has the story.

[Report]

For the first time in nine years since the MERS outbreak in 2015, the presidents of 16 groups, including Samsung, SK, and Hyundai Motor, stood before the media together.

They urged the Democratic Party to halt discussions on the proposed amendment to the Commercial Act, stating they would strive for the revival of the Korean economy in this crisis situation.

They expressed concerns that it would become an obstacle to normal management activities.

[Kim Chang-beom/Vice Chairman, Federation of Korean Industries /Nov. 21: "Many companies will suffer from rampant lawsuits and attacks from foreign speculative capital, making it difficult to operate their boards normally and significantly hindering the discovery of new growth engines."]

The core of the amendment is to stipulate directors' duty of loyalty to shareholders, expanding the scope from the existing 'company' to 'company and shareholders.'

The intention is to prevent the harm to minority shareholders during processes such as corporate mergers or restructuring, but the business community and even the ruling party oppose it, fearing it could lead to unintended consequences.

[Kim Sang-hoon/Chairman of the Policy Committee of the People Power Party: "Considering the various burdens felt by the industry, it would be better to propose an alternative through the Capital Markets Act applicable only to listed companies..."]

In the face of strong opposition, the Democratic Party also seems to be hesitating.

DP Leader Lee Jae-myung proposed a public debate on the pros and cons, stating that he would personally participate in the discussion to clarify the party's position.

[Lee Jae-myung/Democratic Party Leader: "I believe we can compromise as much as needed and find a reasonable solution, so I ask the business community and investors to promptly respond to the public debate."]

The Democratic Party plans to hold a debate with experts from both sides as early as next week and will draw a final conclusion on the amendment to the Commercial Act based on this.

KBS News, Kim Min-cheol.