Opposition seeks tougher rules to monitor business leaders

[THE INVESTOR] The main opposition The Minjoo Party of Korea is seeking ways to reinforce the role of outside directors on corporate boards.

Rep. Byun Jae-il, chief of the party’s policy committee, said on June 30 that he will propose revisions to the Commercial Act to toughen rules regarding outside directors.

Saying that the outside directors are failing to serve their purpose, Byun said that tougher rules will be stipulated in the proposal. 

“There has been criticism that the system introduced to keep major shareholders in check has become a body that defends the interests of the largest shareholder,” Byun said.

Byun also called on the conservative Saenuri Party to cooperate on related matters.

Citing the emphasis Saenuri floor leader Rep. Chung Jin-suk placed on economic democratization, Byun said that the ruling party should cooperate on the matter to process the bill in the near future.

Changes in the proposed revision include clauses that prohibit former executives of a company from being named an outside director of the same organization, and limiting outside directors’ term to less than six years.

By Choi He-suk (cheesuk@heraldcorp.com)