DR & AJU Legislation & Government Relations Consulting Center’s latest issue of its specialized legislative journal, the Policy & Business Report, is now available in digital format.
Businesses must develop a preemptive response strategy in light of the EU carbon border tax implementation in 2026 and the National Assembly’s carbon tax proposals.
On July 28, 2021, the Legislative Strategy Center (represented by Head of the Center Dong Eon CHA) of DR & AJU LLC (represented by Managing Partner Kyu Chul LEE) released the July 2021 issue of the specialized legislative journal, the Policy & Business (P&B) Report.
Mr. Dong Eon CHA, head of the Legislative Strategy Center, stated,
“As the European Union proposed a Carbon Border Adjustment Mechanism (“CBAM”) that includes the establishment of a Carbon Border Tax, the need for corporate decarbonization and shift to ESG management is growing.” He mentioned, “In addition to the carbon tax bill proposed in March, several bills related to decarbonization and ESG have been proposed in our National Assembly.”
The National Assembly has recently been discussing the carbon border tax act. Hye Yeong JANG, a lawmaker from the Justice Party, amended the Transport Tax Act and proposed the Carbon Tax Act, which will impose a carbon price on fossil fuels. Hye In YONG, a lawmaker from the Basic Income Party, introduced a carbon tax bill that will distribute the carbon tax revenue as basic income to the entire nation. Additionally, Jae Myung Lee, the Governor of Gyeonggi Province, also included in his Basic Income Plan the adoption of a carbon tax as a means of assuring basic income financing.
Korean corporations, which heavily rely on exports and manufacturing, must promptly take steps to minimize damages in response to the so-called “carbon border tax” that the EU announced will apply from 2026.
Mr. Seung Cheol LEE, a Senior Advisor at DR & AJU, stressed, “To respond to the so-called “carbon border tax” that EU announced will begin imposing in 2026, our businesses, which primarily rely on exports and manufacturing, urgently need to come up with countermeasures.” He further suggested, “Along with the national and international decarbonization drive, businesses must aggressively adopt ESG management.”
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. Based on a comprehensive evaluation of the legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from June 15, 2021 to July 14, 2021, the July 2021 issue of the P&B Report selects and analyzes legislation that significantly impacts corporate activities. Especially for major Acts, key quotes from legislators, members of the Standing Committee, and government officials are included.
Mr. Kyu Chul LEE, the Managing Partner of DR & AJU, said, “DR & AJU established the ESG Advisory Group to provide corporate clients advice on ESG regulations and risk management, including the Serious Accident Punishment Act.” Mr. Lee stressed, “As ESG, including industrial safety, has evolved into a matter of survival for corporates, DR & AJU has fully prepared the necessary resources and staff to offer corporations effective and comprehensive ESG consultation.
*Please download the PDF file for further information. (Korean)
