Proponents argue that the reform is essential for enhancing corporate accountability and protecting shareholder interests. (Image courtesy of Rawpixel/CCL)
SEOUL, Nov. 27 (Korea Bizwire) – Korea’s financial investment sector will issue an urgent statement advocating for an amendment to the Commercial Act, extending directors’ fiduciary duty beyond companies to their shareholders. The statement, orchestrated by the Korea Corporate Governance Forum, will be unveiled on November 28 at the Press Center in Seoul.
This move comes a week after executives from 16 major conglomerates, including Samsung, SK, Hyundai Motor, and LG, strongly opposed the amendment, calling it “regulatory overreach.”
The Korea Corporate Governance Forum has rallied support from academia, legal experts, financial leaders, international institutional investors, and even social media influencers. Over 100 individuals are expected to endorse the statement, with participation continuing to grow ahead of the press conference.
The statement will counter the corporate sector’s argument that the proposed amendment could lead to frivolous lawsuits and expose boards to undue influence from foreign activist investors. Instead, proponents argue that the reform is essential for enhancing corporate accountability and protecting shareholder interests.
Established in 2019, the Korea Corporate Governance Forum seeks to advance the nation’s economic growth by improving corporate governance practices. Its membership includes prominent figures from the financial investment, legal, and academic sectors.
Last week, the Federation of Korean Industries and major business leaders issued their own statement warning that the amendment would hinder normal boardroom operations and strategic decision-making.
The financial sector’s forthcoming statement is expected to directly rebut these claims while urging lawmakers to finalize the legislation.
The proposed amendment marks a critical juncture in South Korea’s corporate governance reform, underscoring tensions between regulatory initiatives and entrenched business interests.
M. H. Lee (mhlee@koreabizwire.com)
