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 Fair Transactions in Franchise Business Act
This Amendment introduces a punitive damages system under which a person who “intentionally or negligently commits a serious violation of the law” may be held liable for damages of up to three or five times the actual loss.
② Partial Amendment to the Trade Union and Labor Relations Adjustment Act
This Bill limits the recognition of prime contractors as employers of workers employed by subcontractors that, under lawful subcontracting agreements, possess independent authority over personnel and labor management and maintain their own organizational structure. It also excludes matters falling within employers’ unique managerial authorities, including performance-based bonuses, from the scope of labor disputes, while permitting the use of substitute workers to a limited scope notwithstanding the current Act’s general prohibition.
2. Pending Bill(s)
③ Partial Amendment to the National Health Promotion Act
This Amendment provides for the imposition and collection of a sugar levy based on the amount of added sugar contained in every 100 liters of sugar-sweetened beverages, ranging from KRW 1,000 where the content is 1 kilogram or less, to a maximum of KRW 28,000 where it exceeds 20 kilograms.
3. Promulgated Bill(s)
④ Banking Act
This Bill prohibits banks from reflecting certain statutory costs, including required reserves, deposit insurance premiums, and contributions to the Korea Inclusive Finance Agency, in interest rate spread when calculating loan interest rates.
4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration
⑤ Enforcement Decree of the Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry
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