Lee Bok-hyun, Director of the Financial Supervisory Service (FSS), has proposed an open debate regarding the exercise of a presidential right to request reconsideration of an amendment to the Commercial Act. The amendment clarifies directors’ duty to protect shareholders. Despite controversy over an earlier remark where he said he would stake his position on the veto of the amendment, Lee continues to make bold statements.
During a briefing with reporters on the 19th in Yeouido, Seoul, Lee stated, “I am committing everything to the advancement of the capital market, yet I wonder what others are willing to stake.” He suggested an open debate to the Federation of Korean Industries, emphasizing the need for the public to hear diverse perspectives on capital market advancement as a discourse. Lee proposed a non-politicized discussion focusing on policy and institutions, as the association represents corporate interests and has geographical proximity.
Regarding criticism of his previous remarks — labeled as overstepping authority by the ruling party — Lee emphasized, “The president has the power of reconsideration, and what we have is just one of many opinions (‘N divided by 1’). It is an overreach to tell the FSS not to express its view.”
This comes after Lee declared he would “stake his position” regarding the veto, which led to criticism in the National Assembly’s Political Affairs Committee. Committee chairman Yoon Han-hong remarked that such a stance doesn’t align with Lee’s position and that managing the Commercial Act is not within the FSS’s direct responsibilities.
Lee reiterated his responsibility to advance the capital market and improve governance at the president’s direction, while acknowledging the final decision is presidential. He argued that the logic for exercising the right to reconsider the Commercial Act amendment is weak, contrasting it with other laws with significant constitutional and financial implications.
Lee underscored that any veto should focus on economic and financial impacts, not constitutional principles, noting that the amendment aligns with global standards. He suggested that resource allocation, competition, and innovation would benefit in the long term, although measures to address concerns about excessive litigation should be established to mitigate negatives.