Acting President Han Duck-soo has vetoed an opposition-led bill that would have expanded the fiduciary duty of corporate directors to encompass both the company and its shareholders, not the company alone.

Presiding over a Cabinet meeting Tuesday, the acting president asked the National Assembly to reconsider its changes to the Commercial Act, citing the need for in-depth discussions to find alternatives so as to minimize any adverse effects.

It’s the seventh veto from Han and the 41st under the Yoon administration.

Han said he deeply agrees with the spirit of the bill, but that given the influence it could have on the business environment and the competitiveness of big companies, as well as small and midsize enterprises, he decided there is a need to look for alternatives. 

The opposition-led bill is intended to protect individual shareholders’ rights, as corporate directors’ fiduciary duties currently apply only to the company itself.