As the first-ever Korean law firm to issue specialized legislative journals, D&A LLC has been publishing the monthly Policy & Business (P&B) Report since August 2019. The P&B Report provides analyses of plenary sessions of the National Assembly, as well as standing committee and subcommittee meetings. In addition, the firm has been co-hosting the Future Leaders Forum with the Herald Business, inviting chairpersons of standing committees to discuss relevant legislative issues and tasks.
As an extension of this service, D&A has also been issuing the Weekly Legislative Report, which covers various legal issues at the center of public debate along with editorials and columns on the Serious Accidents Punishment Act (“SAPA”) from major daily news outlets. The report will be released with an update on newly proposed or pending bills. Enclosed is this week’s legislative report. Please refer to the P&B Report for further details.
If you wish to subscribe to the P&B Report or have any other queries, please contact us at lc@draju.com.
1. Proposed Bill(s)
① Partial Amendment to the Financial Investment Services and Capital Markets Act
This Amendment allows the Financial Services Commission to order products with leverage ratios exceeding 1x to adjust their leverage ratios for a specified period when market volatility increases sharply, such as during sharp fluctuations in the stock market.
② Partial Amendment to the Financial Investment Services and Capital Markets Act
This Amendment exempts the exercise of voting rights delegated through institutional investors' public proxy solicitations from the 5% reporting rule.
2. Pending Bill(s)
③ Class Action Act
This Bill expands the scope of the class action regime, which is currently restricted to the securities sector, to the entire damages claims and allows for its retroactive application to damages claims arising from events that occurred prior to the enforcement of this Bill.
3. Promulgated Bill(s)
④ Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information
This Bill expands the application of the travel rule, which requires information about a sender and recipient to be provided upon the transfer of virtual assets to another exchange, to transactions involving amounts of less than KRW 1 million.
4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration
⑤ Partial Amendment to the Income Tax Act
This Amendment establishes productive finance individual savings accounts (ISAs), provides that unused annual contribution limit may not be carried forward to the following year, and limits the contribution period to a maximum of 10 years. It also applies the same restrictions to existing ISAs by prohibiting the carryforward of unused contribution limits and limiting the contribution period to five years.
5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
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