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 Act on Special Measures for Strengthening the Competitiveness of, and Protecting National High-Tech Strategic Industries
This Amendment provides an exception allowing a holding company’s second-tier subsidiary to invest in a third-tier subsidiary established in a non-capital region while holding only a 50% ownership stake, provided that the company is designated as a high-tech company approved by the Minister of Trade, Industry and Resources.
② Partial Amendment to the Commercial Act
This Amendment repeals Article 622 of the Act, which provides for the offense of special breach of trust by corporate officers, provides that violations of duties under corporate law shall primarily be governed by civil liability and internal controls, and specifies that the imposition of criminal liability is determined in accordance with the principles of the general criminal law.
2. Pending Bill(s)
③ Special Act on Promoting Succession of Small and Medium-sized Enterprise through Mergers and Acquisitions
This Bill provides for (i) the establishment of a basic plan for promoting SME succession; (ii) support measures, including the designation of Business Succession Support Centers; (iii) special provisions for SME succession, including tax incentives and exemptions under the Commercial Act; and (iv) the registration and oversight of business succession intermediaries.
3. Promulgated Bill(s)
④ Rule on the Performance and Standards for Motor Vehicles and Vehicle Parts
This Bill mandates the installation of pedal misapplication prevention devices in passenger vehicles, as well as passenger vans, trucks, and special-purpose vehicles with a gross vehicle weight of 3.5 tons or less. It also requires electric passenger vehicles and light and small-sized electric trucks to install devices that display the remaining battery life.
4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration
⑤ Partial Amendment to the Enforcement Decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection
This Amendment requires information and communications service providers to notify users of the occurrence of security incidents, where such incidents result in service disruptions or suspensions lasting two hours or longer. It further requires major information and communications service providers to undergo enhanced reviews of an Information Security Management System (ISMS).
5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
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