Corporate governance to be improved

As the government will pursue the second round of improvement for corporate management structure for greater transparency and accountability, it has become the hot issue for the Korean corporate world.

The plan calls for reducing the influence of large shareholders and strengthening the power of minor shareholders and outside directors. It is noteworthy because civic groups are supporting the idea, while corporations opposing it strongly.

Ministry of Finance and Economy officials said that the government would finalize the scheme this month through a discussion with the Justice Ministry and other relevant offices, as well as public hearings. They noted that revised commercial laws and securities transaction laws will be enforced starting next year if they pass the National Assembly this fall.

The government intends to adopt the recommendation for corporate governance, which was announced by the Justice Ministry in June under financial support of the World Bank, although it will consider the nation's situation when it finalizes the plan.