Samsung facing changes in governance structure
By Kim Bo-eunThe likelihood of regulatory changes is a complicated matter for Samsung, as this would force the conglomerate to overhaul its governance structure.According to the Insurance Business Act, stocks held by an insurer of an affiliate company should be limited to 3 percent of the insurer's total assets.The proposed revisions state that the stake an insurance business holds in an affiliate company should be calculated according to market value rather than book value.Ruling Democratic Party of Korea (DPK) lawmakers Park Yong-jin and Lee Yong-woo proposed these revisions to the insurance business act in June. The lawmakers contend that if a company holds an excessive portion of another firm's stocks, this exposes it to risks if the stock price tumbles. Because Samsung Life is an insurer, this exposes policyholders to risks.This is not the first time such revisions have been proposed, but this time they are likely to be passed, considering the DPK now holds the majority of National Assembly seats. The bill will be discussed at the Assembly later this month.The passage of the rev
