Recent Amendments to the Korean Commercial Code and Their Effects on International Competition

Corporate law in Korea has undergone a dramatic transformation in recent years. In an effort to revamp Korean corporations, the Korean government made sweeping reforms to Korea's Commercial Code (sang-bup) three times in the past four years -- in 1995, 1998, and 1999. These newly amended provisions have set in motion unprecedented changes for the Korean corporate environment. Korean management is finally beginning to be monitored and challenged in a more meaningful manner, while at the same time, directors and auditors have gained both renewed authority and responsibilities. Shareholder rights have been strengthened to levels previously unimaginable by Korean standards.