Cabinet meeting approves labor, commercial law revisions

President Lee Jae Myung, right, speaks during a Cabinet meeting at the presidential office in Seoul, Tuesday. Yonhap

The Cabinet on Tuesday approved a revision to the Commercial Act enhancing the rights of minority shareholders and a labor bill expanding the bargaining rights of subcontract workers.

The Commercial Act revision mandates cumulative voting for large listed companies with assets of 2 trillion won ($1.43 billion) or more and expands the requirement for separate elections of audit committee members from one to at least two. The law will take effect one year after promulgation.

It follows a July revision to the act that extended the fiduciary duty of corporate board members to all shareholders.

The labor bill, known as the "yellow envelope law," expands the rights of indirectly employed subcontractors and restricts employers' ability to claim damages from striking workers. It will be implemented six months after promulgation.

President Lee Jae Myung, who presided over the Cabinet meeting, said the bills are intended to improve transparency in corporate management and promote co-prosperity between labor and management, urging follow-up measures to prevent side effects from the legislation.

The Cabinet also approved three broadcasting bills aimed at overhauling governance at public broadcasters, including MBC and EBS, by expanding the number of board directors and granting broader media groups the right to recommend members.

The labor revision and broadcasting bills had been scrapped under the conservative Yoon Suk Yeol administration, but were resubmitted and passed by the ruling Democratic Party of Korea-controlled parliament last month.