DP pushes Commercial Act amendment

[Anchor]

The Democratic Party of Korea has stated that it will promptly push for amendments to the Commercial Act while reflecting the economic sector's demands to reduce side effects.

The People Power Party, which had opposed the amendments to the Commercial Act, has changed its stance and stated that it will review the matter positively, while demanding tax reforms that benefit businesses.

Lee Won-hee reports.

[Report]

The Democratic Party met again with six economic organizations after five days.

They acknowledged that amendments to the Commercial Act are necessary for the advancement of the capital market, but emphasized that they will sufficiently reflect the concerns of the economic sector.

[Jin Sung-jun/Democratic Party Policy Committee Chair: "(If any concerns) arise, we are willing to supplement and amend the system as needed."]

The economic sector has requested that if the duty of loyalty of directors is expanded to shareholders due to the amendments, the application of the crime of breach of trust should be limited to prevent its overuse.

They also urged that if a company suffers losses, it should be legally stipulated that management's rational judgment should not be penalized.

[Park Il-jun/Vice Chairman of the Korea Chamber of Commerce and Industry: "If you show that you are considering ways to minimize side effects until the end, it will operate more effectively...."]

The Democratic Party has decided to first amend the Commercial Act as per the existing party line, given the current upward trend in the stock market, and then review supplementary measures.

Meanwhile, the People Power Party has also changed its previous stance and decided to review the amendments to the Commercial Act positively.

It seems they have judged that it is difficult to oppose the amendments since individual investors support them.

However, they clearly opposed the 3% rule, which limits the voting rights of major shareholders to 3% during the election of audit committee members, and the strengthening of cumulative voting, while advocating for more tax benefits for businesses.

[Song Eon-seog/People Power Party Floor Leader: "We need to push for a tax reformm package that can provide substantial incentives for both businesses and investors."]

After hearing the opinions of the economic sector, the Democratic Party plans to present the amendments to the Commercial Act to the Legislation and Judiciary Committee as early as tomorrow and to process it in the plenary session this week.

KBS News, Lee Won-hee.