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There are growing concerns about the economy due to the revised Industrial Bank Law that approved the plenary session of the National Assembly on the 29th of last month. The revised legislation contained the foundation for the creation and operation of the “Terminal Industry Stabilization Fund,” to be created on a scale of 40 trillion won to support key crisis industries such as aviation and automobiles. However, many of the content that was not included in the amendment proposed by 13 lawmakers, such as Lee Hak-young and Democratic Party lawmakers, was included in the National Assembly discussion process.
The most problematic provision is that the government has made recommendations to the National Assembly for the operation of the National Stabilization Fund to open up the possibility of politics. In the original draft, only the composition and operation of the Fund Management Deliberation Committee and other necessary matters are prescribed by Presidential Decree. However, the final provisions of the law were changed to “consisting of less than seven members, including two arbitrators from the permanent committee of the National Assembly (Political Affairs Committee) and other matters prescribed by the Presidential Decree.”
It is also noted that the KFTC added the requirement to exercise the voting rights of the shares acquired during the financing. There were no provisions for voting rights in the original draft, but an exception was added to the case, which is stipulated in the Presidential Decree, which is expected to cause a significant obstacle to the recovery of funds due to a significant violation of conditions. support. For this change, the government and ruling party cited the reason for the fact that implementation and inspection are essential, as the fund is created through the issuance of bonds by the Bank of Korea and loans from the Bank of Korea. The logic is that the Management Committee of the National Public Fund must include the references of the National Assembly in the Committee of Deliberation of the Fund, as two previous references of the National Assembly were included in the past.
However, it is very worrying that the National Assembly has provided a way to go beyond managing and supervising the operation of the fund and deciding which companies to support. Furthermore, it is also a problem that the objective of limited support for the seven industries increased significantly for the defense industry and the essential public sectors, as the demand for financing increased with the “corona shock”. This means that if impeachment is involved in the operation of the fund, the infrastructure industry, which urgently needs support, can be delayed. Allowing the exercise of voting rights on the shares acquired may raise doubts that “the government and the ruling party will try to intervene in the management of private companies with the help of support”, which may make companies hesitate to request support for.
If there is a problem with running the fund through impeachment, it will not only harm the purpose of saving the key industry, but it will also increase the burden of raising the public. In the decree review process, there should never be a demon hidden in the details. We have seen countless cases of political logic that intervene every time the economic crisis amplifies the crisis.
Ky Hankyung.com, which prohibits unauthorized reproduction and redistribution
