Business corporations in Japan have suffered great difficulties for producing business benefits and overcoming the long term period of the Japanese economic depressions. Therefore, the Japanese government has tried to do its best in order to improve the business circumstances for the betterment of the Japanese economic situation. Among its trials, the most significant change is the social and political movements which are willing to reform the business habitual practice.
Since many leaders in the business corporations and politicians have acknowledged that the long term period of the economic depressions in Japan is fundamentally attributable to the faithless of the corporate governance, they have loudly asserted to improve the corporate governance. The corporate governance is concerned with directors, auditors, shareholders, and so on that can affect the business management in the concerned business corporations.
Recently, many proposals for the improvement of the corporate governance have been introduced by many institutions and the government. Finally, the Diet passed the amendment to the Japanese Commercial Code in May 2002 that introduces the American stylish executive officer system. The executive officer system in the amendment to the Japanese Commercial Code divides the powers to control the business corporations which are belongs the business organs, such as directors, auditors, shareholders. Before the introduction of the executive officer system, there was not a notion of the officer under the Japanese Commercial Code.
This Article examines the old Japanese corporate circumstances in order to compare it to the one after the introduction of the executive officer system. The article also analyses the officer system under the Amendment to the Japanese Commercial Code. Finally, the article carefully proposes the system to Korea.