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, 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 Commercial Act
 
This Amendment requires newly acquired treasury shares to be cancelled within one year from the date of acquisition. It also mandates companies to obtain approval at a general shareholders’ meeting each year for their treasury share disposal plans, and imposes administrative fines of up to KRW 50 million on individual directors for any violation of these obligations.
 
② Special Act on Korea-U.S. Strategic Investment Management

This Bill temporarily establishes the Korea-U.S. Strategic Investment Corporation to create, manage, and operate funds for strategic investments, including investment funds. It also creates investment funds through entrusted assets from the government, the Bank of Korea, and other sources with purpose of supporting the investments in the U.S. and corporative investments in the shipbuilding sector.

2. Pending Bill(s)
 
③ Partial Amendment to the Financial Investment Services and Capital Markets Act

This Amendment establishes a legal framework that brings token securities within the regulated system by incorporating distributed ledger technology (blockchain technology) into the electronic securities regime and by providing a legal basis for over-the-counter transactions.
 
3. Promulgated Bill(s)
 
④ Distribution Industry Development Act
 
This Bill extends the validity period of provisions on the definition and registration of quasi-superstores and the designation of traditional commerce preservation areas for an additional four years. It also requires the government to conduct a comprehensive analysis of whether relevant provisions should remain in force and report the results to the National Assembly.

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

⑤ Partial Amendment to the Enforcement Decree of the Trade Union and Labor Relations Adjustment Act

This Amendment requires trade unions of prime contractors and those of subcontractors to engage in separate collective bargaining (division of bargaining units) due to their conflicting interests, while allowing subcontractors’ trade unions to merge when appropriate according to their characteristics and circumstances (simplification of bargaining counterparts).

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
 
[Edaily] National Pension Service Expands Pension Payment Budget to Approximately KRW 50 Trillion, Considering Serious Accidents in Investment Decisions
[The Herald Business] Industrial Fatalities Reach 457 in Q3 … 22 More Deaths in Workplaces with Fewer than Five Employees, Concentrated in Wholesale, Retail, Agriculture, Forestry, and Fishing
[The Munwha Ilbo] 73% of Companies Say Penalties and Sanctions Alone Cannot Reduce Industrial Accidents … Concerns over Government’s Comprehensive Labor Safety Measures

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