Legislation mandating the cancellation of treasury shares passed its final hurdle in South Korea's National Assembly on the 25th, led by the Democratic Party of Korea.
The National Assembly approved the so-called "Third Commercial Law Amendment" during a plenary session that day.
The amendment, part of the Democratic Party's push to reform financial and capital market structures, requires companies to cancel treasury shares within one year of acquisition as a general rule. Exceptions are permitted for purposes such as employee compensation or employee stock ownership plans, provided that a retention and disposal plan signed by all directors receives annual approval at shareholders' meetings.
Companies subject to foreign investment restrictions under laws such as the Telecommunications Business Act must dispose of treasury shares within three years of the law's implementation to ensure legal compliance.
Meanwhile, the "Law Distortion Crime Act" (Criminal Code amendment)—one of three judicial reform bills pushed by the Democratic Party—was immediately introduced to the plenary session.
The bill stipulates that judges, prosecutors, and other officials who distort the law in cases under trial or investigation with the intent to unlawfully benefit others or harm their rights shall face up to 10 years in prison and up to 10 years of professional disqualification.
However, the Democratic Party revised portions of the amendment just before its introduction. The move appears to address concerns from within and outside the party that certain provisions' ambiguity could trigger constitutional challenges.
The People Power Party denounced the Law Distortion Crime Act as a "bad law" that undermines the judicial system and launched another filibuster.
As a result, the bill is expected to come to a vote on the afternoon of the 26th—24 hours after the filibuster began—following a motion by the Democratic Party and allied parties to end debate.
The remaining judicial reform bills, including legislation to introduce constitutional complaints against court rulings (Constitutional Court Act amendment) and a bill to increase the number of Supreme Court justices (Court Organization Act amendment), are expected to be processed sequentially through the same procedure.