Lee Jae-myung, leader of the Democratic Party of Korea, proposed an open debate on November 22nd amid growing controversy over the proposed amendments to the Commercial Act, which focus on the responsibilities of boards of directors towards shareholders.
During an expanded executive meeting at the National Assembly, Lee stated, “Instead of making unilateral claims and disputes, we should engage in public debate under the watch of the citizens to determine which arguments are valid.”
He mentioned that the day before, the Federation of Korean Industries issued an emergency statement with several large conglomerate leaders, suggesting that “there are issues with the amendments to the Commercial Act” and expressing concerns over potential challenges to corporate management.
Lee also pointed out that individual small investors are calling for quick revisions to the Commercial Act, citing instances like the 2015 Samsung C&T merger, the 2021 physical division of LG Chem, the 2024 SK Innovation merger, and the comprehensive share exchange of Doosan Bobcat as examples of situations that have continuously harmed the real value of small shareholders. He added that there is indeed public concern about the misuse of managerial control leading to the deterioration of the stock market and asked, “How can trust in the stock market be built when blue-chip stocks suddenly become poor stocks?”
The party leader expressed his intent to partake in the debate directly, stating, “I will consolidate both sides’ positions, together with our party’s policy chair, and establish a clear stance for our party. I believe we can find a compromise and a rational solution, so I urge the business community and investors to engage in this public discussion.”