The National Assembly passes the bill of a revision to the Commercial Act that expands corporate directors' duty to shareholders, in Seoul, March 13. Yonhap

The National Assembly on Thursday passed a revision to the Commercial Act that expands corporate directors' fiduciary duty to shareholders, in a move to better protect the rights of minority shareholders.

The amendment, which passed a plenary session in a 184-91 vote, includes provisions that broaden the duty of directors to act in good faith from solely the "company" to both the "company and its shareholders."

Lawmakers of the ruling People Power Party (PPP), who have argued that the revision could create uncertainty in business operations and lead to increased legal costs, cast dissenting or abstention votes.

The PPP plans to ask acting President Choi Sang-mok to exercise his rights to veto the bill.

PPP floor leader Kweon Seong-dong criticized Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), for opposing Choi's reconsideration of the bill.

"It is inappropriate for the head of the FSS, who is not even a Cabinet member, to make such remarks on a matter unrelated to his jurisdiction," Kweon said.

Businesses also stressed the need for Choi to veto the bill, expressing concerns that the amendment could reduce competitiveness and worsen the economic downturn of the country.

Choi will have 15 days to decide whether to request that the National Assembly reconsider the amendment or enact it, which will take effect one year after promulgation. (Yonhap)