The ruling party and the government have agreed to revise several statutes as part of efforts to accelerate the push for a so-called fair economy, one of the Moon Administration's flagship economic policies that aims to improve corporate governance and address unfair market practices.
Korea's Fair Trade Commission, the ruling Democratic Party and eight government ministries including the finance ministry said Thursday they have come up with a "fair economy achievement plan" after going through negotiations.
Around 23 specific areas in seven categories such as corporate governance and corporate ownership will be revised.
"We will revise the laws so corporate board of directors and shareholder's meetings are run competitively. We will strengthen rules related to corporate disclosure and circular shareholding structures."
The chief policy maker of the ruling Democratic Party said the government will also revise laws to boost expertise in the National Pension Fund system and strengthen shareholder's rights through a stewardship code aimed at encouraging firms to reform their governance.
The government will soften so-called five percent corporate disclosure rule, in which an investor who owns five percent or more of the shares of a listed firm needs to report to the supervisory authorities when he or she sells more than one percent of the stocks.
In addition, there will be measures to protect consumer rights in e-commerce and finance.
To help level the playing field, measures will be included to improve partnerships between major conglomerates and subsidiary companies and improve payment systems for small companies.
The ruling Democratic Party said it will work closely with the government to pass the revisions by the second quarter of 2020.
Kim Hyesung, Arirang News.