Opposition leader focuses on economy-related issues to woo swing voters

Rep. Lee Jae-myung, leader of the main opposition Democratic Party of Korea, speaks during a task force meeting at the Korea Exchange in Seoul, Thursday. Yonhap

Rep. Lee Jae-myung, leader of the main opposition Democratic Party of Korea (DPK), pledged Thursday that his party would ensure the passage of a proposed revision to the Commercial Act. His remarks came as he joined a task force meeting held at the Korea Exchange (KRX) in Seoul, discussing ways to further boost the sluggish local stock markets.

"Though (the government's) policy direction to revise the act is right, the passage of the revision is unlikely to happen," Lee said at the task force meeting. "The government and the ruling party initially spoke actively about it, but now, as they realize it might actually happen, they are making excuses and dragging their feet. There is a 99 percent chance that they will only discuss it until the end of the National Assembly's term."

The DPK leader said he plans to pass the revision within this regular session of the National Assembly.

"Directors' fiduciary duty to shareholders is the most important thing. To ensure equal rights for shareholders and prevent the abuse of controlling management rights, I will make sure the revision of the Commercial Act is passed during this regular session of the National Assembly," Lee stressed, as he described himself as a "former avid stock investor" who can no longer invest due to his current position.

The financial authorities and the government have long been preparing the proposed revision, aiming to expand the duty of loyalty for corporate boards to include safeguarding the interests of shareholders.

Yet, the government has been taking a cautious approach to the matter, as they faced vehement opposition to the proposed revision from interest groups comprised of major conglomerates over concerns that the passage of such a law would delay corporate decisions. As a result, the government is discussing a targeted regulation that would only apply to about 2,600 listed companies.

Lee reaffirmed his strong commitment to pushing for the revision of the act, saying that "14 million stock investors (in Korea) are disappointed and frustrated."

Rep. Lee Jae-myung, front row center, leader of the main opposition Democratic Party of Korea, speaks during a task force meeting at the Korea Exchange in Seoul, Thursday. Yonhap

Lee pointed to four key factors behind the prolonged stagnation of the local stock market: a lack of proper economic policies, an unfair market, abuse of management rights by controlling shareholders and security crises facing the country.

He added that he thinks the KOSPI — Korea's benchmark stock market index — can easily reach 4,000 points, "if the government clearly demonstrates its resolve and implements institutional improvements."

He also called on the KRX to "actively investigate unfair practices occurring in the capital market," urging the state-run exchange to apply stricter procedures and standards for issues like corporate spinoffs and the simultaneous listing of parent and subsidiary companies.

Furthermore, Lee brought up allegations of stock price manipulation involving Sambu Construction, stressing the need for appointing a special counsel over the case. Lee presented a stock chart of the construction company, claiming that the company's stock price movement showed evidence of stock manipulation.

"Anyone who has done even a little bit of stock trading can see that it's manipulation," Lee said, emphasizing that the KRX should be able to investigate such suspicious cases on its own. "Acts of profiting from stock manipulation must never be tolerated," he said.