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 Act on Restriction on Special Cases Concerning Taxation
 
This Amendment includes small modular reactors (SMRs) within the scope of national strategic technologies and expands the tax credit for research and development expenses related to national strategic technologies up to 55%.
 
② Special Act on the Promotion of Small and Medium Enterprise Succession

This Bill requires the government to establish a five-year master plan for providing succession support to ensure systematic support. It also establishes a succession support center and introduces a succession support registration system, allowing the government to offer “one-stop” support services to SMEs seeking business succession.

2. Pending Bill(s)
 
③ Partial Amendment to the Commercial Act

This Amendment mandates the cancellation of treasury shares within one year of their acquisition, and requires companies holding treasury shares as of the effective date of this Amendment to cancel such shares within one year and six months from the date of enforcement.
 
3. Promulgated Bill(s)
 
④ Enforcement Rule of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation
 
This Bill limits eligibility for repatriation support to off-shore companies that have actually downsized their overseas operations by selling equipment or shutting down part of their production facilities. It also requires off-shore companies, when reporting the completion of such downsizing, to submit documents demonstrating the methods used for the reduction.

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

⑤ Partial Amendment to the Enforcement Decree of the Act on the Promotion of Information Security Industry

This Amendment removes the previous criterion for the information security disclosure obligation requiring annual sales of at least KRW 300 billion, and imposes the disclosure obligation on all companies listed on the KOSPI and KOSDAQ markets. It also newly includes business entities subject to mandatory Information Security Management System (ISMS) certification within the scope of entities subject to the information security disclosure obligation.

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
 
[The Financial News] Dismissal Requests for Heads of Local Public Institutions After Serious Accidents—Safety Evaluation Weight Increased
[Edaily] Supreme Court Sentencing Commission to Establish SAPA Sentencing Guidelines by April 2027
[Sedaily] “Identify Workplace Hazards in Just Three Seconds Using Photos"—Labor Ministry Develops AI System to Prevent Industrial Accidents

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