Labor group to stage large-scale strike this month
Yang Kyung-soo, chairman of the 1.2 million-strong KCTU, also called on the government to immediately scrap "anti-labor" policies by the previous Yoon Suk Yeol government.
The KCTU said it will stage strike rallies nationwide on July 16, including in central Seoul, followed by another rally and march on July 19.
The union also renewed its calls for revisions to Articles 2 and 3 of the Labor Union Act, also known as the "yellow envelope law," aimed at limiting companies from making claims for damages against legitimate labor union disputes.
The legislation passed the National Assembly twice but was vetoed by Yoon amid opposition from business lobbies and the People Power Party. (Yonhap)
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Korea Herald
7 hours ago
- Korea Herald
Korean boardrooms face shakeup after Assembly passes Commercial Act revision
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The amendment, which aims to protect minority shareholders and improve corporate governance at Korea's family-owned conglomerates, now awaits final approval from President Lee Jae Myung, who is widely expected to sign it into law. The bill's most consequential change expands directors' fiduciary duty beyond just serving 'the company' to serving 'the company and its shareholders.' The new law stipulates that directors must act in the interest of all shareholders, preventing them from favoring particular groups, including the founding families of chaebol groups. This rule will take effect immediately after being signed into law. Another contentious provision for the business community is the so-called '3 percent rule,' in which top shareholders and related parties will have their voting rights capped at 3 percent when electing audit committee members. Under the revision, the 3 percent limit, which previously applied only when appointing internal directors to the audit committee, will now also apply to the election of outside directors to the committee. The revision also mandates that listed companies with assets of more than 2 trillion won ($1.47 billion) must hold electronic shareholders meetings, in addition to in-person gatherings. Additionally, the legislature agreed to replace the term 'outside director' with 'independent director,' a largely symbolic shift that aims to stress greater separation from company leadership to exercise independent oversight. The bill clearing the Assembly came with no surprise, given President Lee's liberal bloc, which supports the legislation, holds a majority in the unicameral parliament, with 167 seats. On the campaign trail, Lee had pledged the revision, arguing it would help solve the 'Korea discount' and lift South Kora's benchmark stock index Kospi to 5,000. 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'The 'hot potato' 3 percent rule was included. This restricts the largest shareholders voting rights while protecting minority shareholders,' said Kim Doo-un, analyst at Hana Financial Investment. 'The revision of the Commercial Act is a signal that Korea is beginning to resolve the 'Korea discount'' Kim added that the revision will likely boost the Kospi through increased foreign investment flows. Meanwhile, the business sector, which includes some of the major conglomerates, voiced concerns. 'Activist campaigns are likely to be launched against companies vulnerable to management control disputes,' said an industry official requesting anonymity. 'Practically, aligning the interest of all shareholders is difficult. Corporate directors may become overly conscious of shareholder sentiment and potential lawsuits.' 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Korea Herald
8 hours ago
- Korea Herald
Lee's PM pick passes Assembly amid opposition boycott
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Korea Herald
9 hours ago
- Korea Herald
Natl. Assembly approves PM nominee Kim Min-seok
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