South Korea's cabinet on Monday approved a commercial law amendment mandating companies to cancel treasury shares, along with three judicial reform bills and legislation to merge Jeonnam Province and Gwangju Metropolitan City.
At an extraordinary cabinet meeting presided over by President Lee Jae-myung on the 5th, the government passed the so-called "third commercial law revision" requiring mandatory cancellation of treasury stock. Companies acquiring their own shares must cancel them within one year as a general rule. The law takes effect immediately upon promulgation.
The cabinet also deliberated and approved a special law establishing a unified Jeonnam-Gwangju Special City, along with amendments to the Local Autonomy Act, Criminal Act, Court Organization Act, and Constitutional Court Act.
The new Jeonnam-Gwangju Special City will receive status comparable to Seoul Special City, including national fiscal support and educational autonomy. The region will elect a unified mayor in the June 3 local elections.
Among the three judicial reform bills, the constitutional complaint against court rulings law allows parties to challenge the constitutionality of Supreme Court decisions before the Constitutional Court. Complaints must be filed within 30 days of a final ruling, and the Constitutional Court may suspend judgment effects until its decision. Cases may be dismissed if all judges on the designated panel unanimously determine the complaint lacks merit.
The law distortion crime amendment imposes up to 10 years in prison and 10 years of qualification suspension on judges and prosecutors who distort the law in criminal cases to unlawfully benefit or harm others. Both laws take effect immediately upon promulgation.
The Supreme Court justice expansion law increases the number of justices from the current 14 to 26, adding four annually over three years starting in 2028. President Lee will appoint 22 of the 26 justices during his term—12 new positions plus 10 replacements for retiring justices.
The cabinet also passed the National Referendum Act, which had been stalled for over a decade. The revision guarantees overseas citizens' voting rights by including those registered on overseas voter rolls, and requires constitutional amendment referendums to be held on the Wednesday immediately preceding the 30th day after the National Assembly approves the amendment.