The National Federation of Entrepreneurs (former convulsions) said on the 17th that △Unclear profit calculation △Infringement of property rights of shareholders △Possibility of judicial punishment by management △Concerns about equity with foreign companies △Weakening growth incentives. Insisted that a review be done.
The FKI’s first point is that the standard for calculating corporate profits is not clear.
It is argued that it is difficult to clearly measure a company’s performance attributable to Corona 19 as the profit and loss of a company is determined by various factors such as global economy, product competitiveness, marketing capability, market trend change, industry conditions, and exchange rate.
The FKI explained that it is not appropriate to say that semiconductors, home appliances, platforms, and non-face-to-face companies are being discussed, “it is not appropriate to say that these companies have benefited only from Corona 19, ignoring that they have made bold facility investments and R&D with a deficit.” did.
The second reason was that there is a concern that shareholders’ property rights may be infringed through the profit sharing system.
If some of the corporate profits returned to shareholders through dividends are shared with unrelated companies or small business owners, a problem may arise that directly infringes the interests of shareholders.
The third issue was that executives could be legally liable if they share corporate interests arbitrarily.
According to the Supreme Court’s precedent, it is a violation of the manager’s obligation to fail to fully review the nature of the donation, the amount of donation, the purpose of the company’s establishment and its impact on the public interest, and the relationship between the company and the donation target when making a decision to donate.
The fourth issue is that the benefit-sharing system is likely to be applied only to domestic companies excluding foreign companies.
The FKI said, “If the profit-sharing system is applied to foreign companies such as YouTube and Netflix, it is highly likely to be applied only to domestic companies as it may become involved in international disputes.” “It may be disadvantageous to domestic companies in competition with foreign companies.”
The final issue is that the profit-sharing system weakens the motives for pursuing profits and the growth and innovation engines of companies.
The FKI emphasized, “The compulsory return of profits undermines the motive for pursuing profits and dampens the vitality of the economy,” and emphasized that “the win-win activities that companies have been autonomously pursuing can be undermined.”