With the KOSPI surpassing the 5,000 mark, which was a key campaign pledge of President Jae Myung LEE, the ruling Democratic Party of Korea is expected to step up its legislative push on stock-related policies.

As part of its legislative agenda, the ruling party plans to pass the third amendment bill to the Commercial Act, which was proposed last year, through the National Assembly. The amendment focuses on mandating the cancellation of treasury shares. President LEE has called on the ruling party’s leaders to move swiftly to revise the Act, and underscored the importance of mandatory treasury share cancellation at a meeting with the party’s KOSPI 5000 Special Committee, which has spearheaded the amendment.

The third amendment to the Commercial Act was proposed in November 2025 by Rep. Gi Hyoung OH, chairperson of the ruling party’s KOSPI 5000 Special Committee. The key content of the amendment is the mandatory cancellation of newly acquired treasury shares within one year of acquisition. It also grants a six-month grace period for treasury shares held prior to the enforcement of the Act. In addition, it provides for exemptions from the treasury stock cancellation obligation where a company uses treasury shares for officer and employee compensation through stock options, grants employee stock options to employees, or utilizes the shares for business purposes specified in its articles of incorporation, such as the introduction of new technology and the enhancement of financial structures. This amendment would also impose an administrative penalty of up to KRW 50 million on an individual director if the shares are not cancelled within one year from their acquisition.

Meanwhile, the business community has called for legislative improvements to reduce the business uncertainties that companies may face as a result of the revision. The community has also voiced concerns over the rapid push for the third amendment to the Commercial Act, immediately following the passage of the first and second amendments, which introduced directors’ duty of loyalty to shareholders, mandated a cumulative voting system, and expanded the number of audit committee members subject to separate election.

As the first-ever Korean law firm to issue specialized legislative journals, D&A Public Sector Relations Group has been publishing the monthly Policy & Business Report since August 2019. The January 2026 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from the opening of the 22nd National Assembly on December 15, 2025, to January 14, 2026, and selected and analyzed legislation with significant impact on corporate activities. In the case of major legislation, key mentions of legislators, members of the Standing Committee, and government officials are included.