At the “Task Force on Revitalizing the Stock Market” meeting held at the Korea Exchange in Seoul, Lee Jae-myung, the leader of the Democratic Party, expressed that the amendment of the Capital Markets Act to a rational level could negate the need for amending the Commercial Act. He mentioned concerns from the business sector regarding the Democratic Party’s push for a Commercial Act amendment.
In response, the government and the ruling party suggested that instead of the Commercial Act amendment, the Capital Markets Act should be amended to implement targeted regulations to protect minority shareholders.
Lee acknowledged the validity of these “targeted regulations” and suggested that it might be better to regulate only companies that are public and registered (i.e., those listed on the stock market) rather than a comprehensive amendment that would affect smaller companies as well.
However, despite his statement, it is unlikely that the Democratic Party will withdraw its push for the Commercial Act amendment. During a briefing after the meeting, Rep. Kim Nam-geun clarified that Lee’s remarks did not indicate a retreat from the proposed amendment.
Lee also expressed doubts about the likelihood of implementing targeted regulations through amending the Capital Markets Act, noting that the responsibility for such changes lies with the National Assembly’s Political Affairs Committee, and predicting that the government and ruling party will not pursue the amendment.
He added that the government and ruling party had previously supported the Commercial Act amendment but have since backtracked, using various excuses to hinder its progress.
The Democratic Party plans to hold an intensive discussion session with the business community on December 4th, led by Lee, to further discuss the Commercial Act amendment.