Lee Jae-myung, leader of South Korea's main opposition Democratic Party
Credit: Reuters Photo
Seoul: South Korea's leading presidential candidate, Lee Jae-myung, on Monday pledged to push for a revision of the country's commercial act, as part of a plan to eliminate the so-called "Korea Discount."
South Korea's parliament, controlled by the liberal Democratic Party formerly led by Lee, passed legislation in March that expanded the fiduciary duty of board members to include protecting the interests of minority shareholders.
But the revision was discarded after South Korea's acting President Han Duck-soo vetoed the legislation, which he said could impede management's decision-making and create unnecessary confusion.
The Korea discount refers to the lower valuations that South Korean companies typically trade on relative to their global peers due to factors such as the dominance of family-owned conglomerates, criticised for putting their interests ahead of other shareholders.
Lee is one of the DP's primary candidates for the upcoming presidential snap election in June and has been leading opinion polls.