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 the Management of Public Institutions 

This Amendment allows a special business performance evaluation to be conducted six months after the appointment of an institution’s head, when it is deemed necessary to inspect initial management performance and the fulfillment of business goals, or upon the occurrence of a significant management crisis, such as the deterioration of financial soundness.

②  Partial Amendment to the Income Tax Act

This Amendment abolishes the current long-term holding special tax deduction, under which capital gains tax is exempt for owners holding a single house with a transfer value not exceeding KRW 1.2 billion, and up to 80% of capital gains (40% for the holding period and 40% for the residing period) is deductible where the transfer value exceeds KRW 1.2 billion and the owner has resided in it for at least 10 years. In its place, it imposes a lifetime cap on capital gains tax credits of KRW 200 million per individual, applicable to the transfer of property held for at least three years.

2. Pending Bill(s)

③  Class Action Act

This Bill expands the scope of the class action regime to include the entire damage claims and allows for its retroactive application to damages claims arising from causes that occurred prior to the enforcement of this Bill.

3. Promulgated Bill(s)

④  Special Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry

This Bill provides for (i) detailed special provisions, including exceptions to authorization requirements and environmental standards, and the relevant procedures, in order to support business restructuring and the transition to high value-added businesses; (ii) criteria and procedures concerning merger reviews, concerted actions, and information exchange as exceptions under the Monopoly Regulation and Fair Trade Act; and (iii) reductions or exemptions of technology royalties and measures to support employment stability.

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

⑤  Partial Amendment to the Enforcement Decree of the Act on the Management of Buildings

This Amendment streamlines procedures related to demolition and allows for a construction project manager to be preferentially designated as a demolition supervisor, provided that certain requirements are met.

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies

[News1] Bereaved Family of a Fatal Structure Collapse Victim at NC Park Files Complaint Against NC Dinos Corporation and its CEO
[The Herald Business] SMEs Fear Fires and Explosions…Only 20% Equipped with Automatic Detection Systems
[Maeil Business News] Factory Fire That Killed 23…CEO’s Sentence Significantly Reduced from15 to 4 Years

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