JIPYONG LLC

KOREA LEGAL INSIGHT

Recent Amendments to Korea’s Commercial Act: Key Changes and Implications for Businesses

2025-08-18

On July 3, 2025, Korea’s National Assembly passed significant amendments to the Commercial Act introducing changes to corporate governance provisions. These reforms are designed to enhance transparency, strengthen shareholder protections, and promote fairer board appointment and decision-making processes. The principal amendments include: (i) the expansion of directors’ duty of loyalty, (ii) the establishment of a legal framework for electronic general meetings, and (iii) the introduction of mandatory cumulative voting and separate election of audit committee members for large, listed companies. This article outlines these core changes, examines their practical implications, and suggests strategies for compliance in the evolving regulatory landscape.

1.	Expansion of Directors’ Duty of Loyalty
2.	Legal Framework for Electronic General Meetings
3.	Mandatory Cumulative Voting and Separate Election of Audit Committee Members

KLI Editors

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