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President Lee Jae-myung speaks during a Cabinet meeting at the presidential office in Yongsan, Seoul, on July 15. / Source: Yonhap News

President Lee Jae-myung emphasized the need for fiscal responsibility during a Cabinet meeting on July 15, instructing government ministries to “drastically reduce wasteful or inefficient budget items” in next year’s spending plan.

“Active fiscal policy will remain important in 2026,” Lee said, urging ministries to reflect public opinion in the budgeting process and prioritize efficiency.

During the same meeting, Lee promulgated a revision to the Commercial Act, which expands corporate directors’ fiduciary duty from serving the company alone to serving both the company and its shareholders. The law takes effect immediately.

The so-called “3% rule,” which caps the combined voting rights of major shareholders and their affiliates to 3% in appointing or removing audit committee members, will be implemented one year from now.

Presidential spokesperson Kang Yoo-jung said the Commercial Act revision passed without objections during the Cabinet session.

The revised law also mandates electronic shareholder meetings for listed companies and requires outside directors to be reclassified as independent directors.

Originally passed by the Democratic Party-led National Assembly in March, the bill was vetoed by then-acting president and Prime Minister Han Duck-soo. It was later re-approved in a bipartisan vote on July 3.

In a closed-door portion of the meeting, Lee praised Financial Services Commission Chairman Kim Byung-hwan for the June 27 real estate measure, which limits housing loan ceilings to 600 million won (approx. $440,000), calling it an “appropriate and effective regulation.”

Commenting on the return of medical students who had staged a collective leave of absence, Lee said, “Though belated, it is very fortunate,” and urged them to reflect on their responsibilities as future medical professionals entrusted with public health and safety.

Marking the second anniversary of the Osong underpass tragedy in Cheongju, Lee condemned what he described as “anti-social insults” toward the victims. He instructed authorities to take strict action “under a zero-tolerance policy within the bounds of the law.”