DPK to Grant One-Year Grace Period for Disposal of Existing Treasury Shares
Party Leadership Addresses the Issue
at Meeting with the Korea Federation of SMEs
The Democratic Party of Korea is currently pushing for a third amendment to the Commercial Act, which would make the cancellation of treasury shares mandatory. However, the party has decided to grant a one-year grace period for the disposal of treasury shares already held by companies.
On December 15, Democratic Party leader Jung Chungrae and other party executives announced this at the 'SME Legislative Agenda Town Hall Meeting' held jointly with the Korea Federation of SMEs at the Korea Federation of SMEs building in Yeouido, Seoul.
On this day, Kim Ki-moon, Chairman of the Korea Federation of SMEs, commented on the third amendment to the Commercial Act, saying, "On behalf of the SME sector, I request that a minimum one-year grace period be granted for the disposal of existing treasury shares." In response, Han Jeongae, Chairperson of the Democratic Party Policy Committee, replied, "It is likely that a grace period of about one year will be given for treasury shares already held. However, if companies wish to hold them for more than one year, it would be preferable to obtain shareholder approval through a special resolution at the general meeting, allowing them to retain the shares for the intended purpose."
Chairperson Han also explained the Win-Win Cooperation Act, which is currently pending in the National Assembly Legislation and Judiciary Committee. She stated, "The Win-Win Cooperation Act, which aims to eradicate technology theft between large and small businesses and to strengthen investigations and support for victimized companies, includes provisions such as the 'Korean-style evidence disclosure system' and 'court orders for submission of materials.' This bill has passed the National Assembly's Industry Committee through bipartisan agreement and is now pending in the Legislation and Judiciary Committee." She added, "The Attorney-at-Law Act, which includes provisions on attorney-client privilege, also needs to be amended in connection with this bill. Since the Attorney-at-Law Act is also under discussion in the Legislation and Judiciary Committee, it is likely that both bills will pass the plenary session in January."
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Leader Jung Chungrae also commented, "It has become quite difficult to respond to low-priced Chinese products in the steel and aluminum derivatives sectors." He continued, "In this regard, I would like to inform you that the steel industry has been somewhat relieved by measures such as the introduction of new testing methods for color-coated steel plate coating weights, improvements to KS certification review standards, and support for small and medium-sized automotive parts companies in dealing with tariffs."
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