[Newsis] Expansion of the Duty of Loyalty for Directors… Concerns Over Excessive Corporate Litigation [Controversy Over the Amendment to the Commercial Law①]

November 16, 2024
Newsis reported on the comments of attorney Kyungchun Kim of Lee & Ko regarding the proposed amendments to the Commercial Law aimed at strengthening corporate governance regulations. Newsis reported, "As the Democratic Party recently adopted the amendment to strengthen corporate governance regulations as its party platform, the business community has reacted not with approval, but with strong opposition, arguing that the amendment could provide speculative capital a pretext for hostile takeovers and could lead to companies being caught up in lawsuits and disputes, rather than being able to focus on their core business." In response, Kyungchun Kim stated, "The proposed amendment could expose legitimate capital transactions, such as mergers and physical divisions, to challenges from a minority of shareholders," and added, "This could make it difficult for management to make decisions regarding corporate restructuring."