Parliament passes amendments to Commercial Act geared towards business restructuring

South Korean Cabinet Approves Revision to Commercial Act

The South Korean Cabinet has recently approved a revision to the Commercial Act, a significant move aimed at strengthening corporate governance. The passage of the amendment took place in the main hall of the National Assembly, located in Yeouido, a western district of Seoul, on August 25.

The revised act expands the fiduciary duty of board members to shareholders, a change that is expected to have far-reaching implications for corporate behaviour in the country. However, specific details about the changes in the Commercial Act were not provided.

The Democratic Party (DP) has adopted a 'pass first, revise later' stance on the commercial code amendment. This approach is causing discontent within the business community, as they are left in the dark about the exact nature of the changes.

The National Assembly's passage of the Commercial Act revision was reported by YONHAP, a reputable news agency in South Korea. The exact composition of the parliamentary majority that approved the revision of the Commercial Code includes members from the Swiss People's Party (SVP), the Social Democratic Party (SP), and the Free Democratic Party (FDP), along with some representatives from the Christian Democratic People's Party (CVP).

The revision to the Commercial Act is a significant step towards enhancing corporate accountability in South Korea. As the details of the changes become clear, it will be interesting to see how corporations adapt to the new regulations and how the business community responds to these changes.