Amendment relating to the "3% rule" approved by bipartisan vote in a subcommittee within the Commercial Act.
In a significant move towards bolstering the Korean economy, President Lee is set to roll out a series of policies aimed at economic revival. One of the key steps in this direction is the ongoing negotiation of amendments to the Commercial Act.
On July 2, the Legislation and Judiciary Committee's subcommittee held a meeting in western Seoul to discuss these amendments. The focus of the discussion was to enhance shareholder protection and corporate transparency.
Key points of the discussion included the expansion of the duty of care of directors from just the company to both the company and shareholders. Another point of discussion was the conversion of outside directors to independent directors, and the mandating of electronic shareholder meetings.
However, some contentious issues remained unresolved and were set for further discussion. These included the separate election of auditors and the expansion of the number of audit committee members from one to two or more. The "3% rule" related to auditor elections and the adoption of the cumulative voting system were also among the divisive provisions.
In a bid to address these issues, the ruling and opposition parties agreed to hold a public hearing on the centralized voting system and the expansion of audit committee members. The amendment to the Commercial Act is expected to be processed swiftly in the National Assembly plenary session following this subcommittee meeting, with hopes that the bipartisan agreement would send a positive signal to the capital and stock markets.
It is worth noting that the subcommittee meeting did not discuss the government's response to U.S. tariffs. However, the government is expected to announce its response to U.S. tariffs in the near future, as Korea Inc. braces for a potential impact.
Meanwhile, the Senate has passed a resolution recognizing Korea as a linchpin of Indo-Pacific peace and stability. Additionally, President Lee's economic revival policies may include measures to counteract the effects of U.S. tariffs, with reports suggesting the government is considering measures to mitigate the effects of U.S. tariffs on the Korean economy. The government is also expected to implement 160 new policies, including a hike in bank deposit insurance and child support coverage.
In conclusion, the subcommittee meeting focused on negotiating and reaching consensus on key reforms to the Commercial Act aimed at enhancing shareholder protection and corporate transparency, while setting aside more divisive provisions for later debate. The outcome of these discussions and the government's response to U.S. tariffs will play a crucial role in the economic revival of Korea.
- The negotiation of amendments to the Commercial Act, which includes enhancing shareholder protection and corporate transparency, is a significant part of President Lee's policy-and-legislation aimed at reviving the Korean economy.
- In the discussion of these amendments, key points were the expansion of the duty of care of directors, the conversion of outside directors to independent directors, the mandating of electronic shareholder meetings, and certain unresolved issues such as the separate election of auditors.
- The government is expected to announce its response to U.S. tariffs soon, with reports suggesting that measures to mitigate their impact on the Korean economy may be part of President Lee's general-news focused business policies.
- Meanwhile, the Senate has passed a resolution recognizing Korea as a linchpin of Indo-Pacific peace and stability, and the government is also planning to implement 160 new policies, including an increase in bank deposit insurance and child support coverage.
