Concerns are rising over the recent amendment to South Korea’s Commercial Law, specifically the ‘expansion of directors’ duty of loyalty’ provision. The amendment changes the directors’ duty from being ‘for the company’ to ‘for the company and its shareholders’, which could lead to conservative decision-making by directors to avoid lawsuits, potentially weakening the company’s competitiveness. Critics argue that the amendment could inadvertently impose unnecessary restrictions on overall corporate activities, potentially damaging the national economy, and call for more precise alternatives that balance corporate growth and shareholder protection.
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Auto-posted at: 2025-03-17 09:02:04