Overview

• The Democratic Party–led National Assembly approved the measure with 180 votes in favor after the People Power Party ended a 24-hour filibuster and boycotted the plenary vote.
• The revision mandates cumulative voting at listed companies with assets exceeding 2 trillion won and expands the number of audit committee members nominated separately from one to at least two.
• Cumulative voting allows shareholders to pool their votes for board elections, increasing the chance for minority investors to secure representation.
• The provisions restore elements omitted from a July amendment that only broadened directors’ fiduciary duty to all shareholders.
• President Lee Jae Myung has linked the reform to efforts to address the long-discussed 'Korea Discount,' while the People Power Party argues it could lead to inefficient governance and weaker competitiveness.