Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), speaks during a press conference at the FSS building in Seoul, Wednesday. Yonhap

Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), reaffirmed his opposition on Wednesday to a potential presidential veto of the Commercial Act amendment recently passed by opposition parties and proposed a public debate with business leaders critical of the change.

Emphasizing his full commitment to capital market advancement, Lee took a firm stance, questioning what opponents are willing to risk in return. The remarks follow criticism from some ruling party lawmakers after he declared last week that he would stake his position in opposition to the veto.

His latest comments come amid resistance from business associations to the amendment, which was unilaterally passed by the main opposition Democratic Party of Korea and other opposition parties on Friday. The revision expands corporate directors' fiduciary duties beyond the company to also include shareholders.

Business groups argue this could infringe on corporate management rights. The ruling People Power Party, which also opposes the bill, has said it would ask acting President Choi Sang-mok to veto it.

The chief of the country's financial watchdog expressed regret over the opposition parties' rushed passage of the bill but also highlighted its positive aspects, emphasizing the need to present diverse perspectives on capital market advancement to the public.

"I believe the Federation of Korean Industries (FKI) is well-positioned to represent the corporate stance, so if we can agree on the format — whether next week or later — I may personally participate in the debate," Lee said during a press conference.

"It would be constructive to openly discuss before the public what the issues are, what side effects may arise and how the reform should proceed. Rather than turning this into a political dispute, we should approach it as a policy and institutional discourse."

Lee dismissed claims from the business community that major foreign countries restrict directors' fiduciary duties to the company as "fake news," stressing that the amendment aligns with global standards.

According to the FSS, the General Corporation Law of the U.S. state of Delaware and the Model Business Corporation Act in the United States stipulate that directors owe fiduciary duties not only to the company but also directly to shareholders.

It also noted that in the U.K.'s case, the law recognizes directors' direct obligations to shareholders in certain transactions, while Japan has recently strengthened shareholder protection through court rulings and guidelines.

"In the long run, it can be seen positively in terms of efficient resource allocation, promoting competition and driving innovation," Lee added.

Representatives from eight major business associations, including the Federation of Korean Industries and the Korea Chamber of Commerce and Industry, hold a press conference at the National Assembly in Seoul Wednesday, urging acting President Choi Sang-mok to veto the Commercial Act amendment. Yonhap

Lee's comments came hours after eight major business associations, including the FKI and the Korea Chamber of Commerce and Industry, expressed concerns over the passage of the amendment and urged the acting president to exercise the veto.

"The amendment defines directors' duties too abstractly, lacking clear standards for real-world business environments," their statement said. "Vague terms like protecting all shareholders' interests in conflicts could violate constitutional clarity and cause managerial uncertainty."

They added that if the current system is insufficient, refining the Capital Markets Act, which was designed to protect minority shareholders, would be sufficient, echoing the stance of the Financial Services Commission and the ruling party.

Lee also said during the press conference that the FSS launched an investigation into private equity firm MBK Partners, the largest shareholder of Homeplus, in connection with the retailer's entry into the corporate rehabilitation process.

According to Lee, the watchdog formed a task force for the probe amid growing suspicions that the rehabilitation of the country's No. 2 supermarket chain was premeditated, potentially putting short-term bond investors at risk of losing their principal.

"MBK should actively cooperate with the investigation to earn the trust of stakeholders," Lee said.

The FSS began inspections of Shinyoung Securities, which managed the issuance of Homeplus short-term bonds, as well as two credit rating agencies last week.