Weekly Legislative Report for the week of ㅡ August 8, 2022 – August 12, 2022
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU 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, DR & AJU 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.
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1. Proposed Bill(s)
① Partial Amendment to the Act on Special Measures for Reinforcement and Protection of Competitiveness of National Advanced Strategic Industry Competitiveness
This Amendment i) supports the establishment of strategic industry specialized complexes from the stage of the creation so that the National Advanced Strategic Industry Committee can swiftly establish and designate the specialized complexes; ii) expands the scope of the exemption from preliminary feasibility studies to include public enterprises or public institutions and shortens the period of prompt processing of approval from 30 days to 15 days; iii) adds high schools tailored to industrial demand to human resource development projects and expands the quotas of university students; and (iv) eases the criteria for appointment qualification of educational officials for training or re-education of professionals, and establishes a system that allows plural positions.tion of bank interest rates needs to be improved.
② Partial Amendment to the Restriction of Special Taxation Act
This Amendment extends the effective period of the investment tax credit scheme for national advanced strategic industries to 2030. The basic credit rates have been modified to 20%, while higher rates of 25% will be applied for medium-scale companies and 30% for small and medium-sized enterprises (“SME”s), and 5% for excess tax. The Amendment also expands the tax incentives for research and human resource training expenses to include operating costs for “contracted departments,” where educational institutions establish contracts with local citizens to train tailored human resources; deducts costs equivalent to 10% of the market price of donated assets from corporate tax when companies donate second-hand assets free of charge to universities, etc.; and extends the tax reduction period for foreign engineers from 5 years to 10 years to secure the influx of outstanding foreign engineers of advanced strategic industries.
2. Pending Bill(s)
③ Partial Amendment for Act on Prevention of Divulgence and Protection of Industrial Technology
This Amendment revises the offences stipulated in the current Act as a “specific-intent crime” to a “general-intent crime.” The Amendment also intensifies the punishment imposed on any entity who divulges the “national core technology” to foreign countries by extending the minimum term of imprisonment with labor for a definite term from three years to five years and raising the maximum fine limit of KRW 1.5 billion to KRW 2 billion
3. Promulgated Bill(s)
④ Act on the Management of Public Institutions
This Bill mandates public enterprises and quasi-governmental institutions to appoint a non-executive director (labor director) who is either recommended by worker representatives or receives the consent of the majority of workers to the board of directors.
4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration
⑤ Partial Amendment to the Enforcement Rule of the Customs Act
This Amendment expands the duty-free allowance on a passenger’s belongings from USD 600 to USD 800. The Amendment also expands the duty-free allowance for alcohol from the current one bottle (not more than USD 400 for 1 liter) to two bottles not more than USD 400 for 2 liters).
5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
