The main opposition Democratic Party, which controls the parliament, has vowed to revise the commercial code so that boards have an obligation to serve the needs of all shareholders not just those of companies, whose decision-making is often swayed by controlling shareholders.
South Korea’s top financial regulator opposes proposed changes to corporate law sought by investors as a way to address undervaluation of the nation’s stock market.
Amending the nation’s Commercial Act to expand corporate boards’ fiduciary duty to all shareholders could backfire, as such a move would affect smaller and non-listed companies as well as large corporations, Financial Services Commission Chairman Kim Byoung-hwan told reporters in a briefing Monday.
