As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU 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, DR & AJU 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, and 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 strengthens the disclosure obligations of private equity funds, imposes restrictions on their investment in the national pension, requires the establishment of a conflict-of-interest prevention system, and regulates leveraged buyouts (LBOs). It also restricts private equity funds from making distributions, disposing of assets, or reducing capital for at least two years after acquiring a company to prevent short-term asset stripping, and reduces their borrowing limit from the current four times their capital to twice their capital.
 
② Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation

This Amendment grants an income or corporate tax deduction equal to 10% of production costs to business entities that domestically manufacture products using national strategic technologies, such as semiconductors, secondary batteries, future vehicles, biotechnology, and clean hydrogen.

2. Pending Bill(s)
 
③ Partial Amendment to the Trade Union and Labor Relations Adjustment Act

This Amendment introduces the principle of presuming worker status, defines an "employer" to include any person who exerts or holds de facto control or influence, and expands both the scope of labor disputes and the limitations on corporate damage claims against union strikes.
 
3. Promulgated Bill(s)
 
④ Enforcement Decree of the Motor Vehicle Management Act
 
This Bill imposes a penalty surcharge equivalent to 2/100 of the sales of the relevant vehicle model on persons who fail to comply with requirements, such as ensuring normal vehicle operation after software updates. It also imposes an administrative fine of KRW 10 million on persons who either fail to submit materials related to updates in advance or submit false materials to the Minister.

4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration

⑤ Partial Amendment to the Enforcement Decree of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy

This Amendment requires public parking lots with a capacity of 80 or more vehicles, operated by the government, local governments, or public institutions, to install new and renewable energy facilities, such as solar power generation facilities.

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
 
[The Herald Business] Companies Involved in Serious Accidents to Face Loan Restrictions … Immediate Disclosure on Stock Exchange to Be Introduced
[The Korea Economic Daily] Foreign Workers Not Covered by SAPA … Fatality Rate “2.4 Times Higher” Than That of Korean Workers
[The Herald Business] Safety Assessments to Be Mandatory for Construction Projects Worth KRW 10-30 Billion … National Contracting System to Be Revised

*For more details, please download the PDF file attached.