Legislation & Government Relations Consulting Center 2023-05-17
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Weekly Legislative Report (For the week of May 8, 2023 – May 12, 2023)

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.

If you wish to subscribe to the P&B Report or have any other queries, please contact us at .

1. Proposed Bill(s)

① Partial Amendment to the Corporate Restructuring Promotion Act

This Amendment extends the expiration date of the Corporate Restructuring Promotion Act by five years and provides additional financial support for companies that have the potential for rehabilitation through corporate workout.

② Partial Amendment to the Act on Restriction of Special Taxation

This Amendment aims to promote investment in provincial regions by lowering the corporate tax rate by 5 percentage points for companies that relocate from the Seoul Metropolitan Area to other areas and offering a tax exemption for the establishment of factories in provincial regions.

2. Pending Bill(s)

 Partial Amendment to the Financial Investment Services and Capital Markets Act

This Amendment introduces fines of up to twice the amount of profits obtained or losses avoided for individuals engaged in unfair trade practices, including the utilization of material nonpublic information, market price manipulation, and stock manipulation.

3. Promulgated Bill(s)

④ Framework Act on Local Taxes

This Bill enables house lease deposits to be preferentially paid over local taxes when a tenant-occupied house is auctioned or sold publicly.

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

⑤ Partial Amendment to the Enforcement Decree of the Act on Restriction of Special Taxation

This Amendment includes five electric vehicle technologies into the list of national strategic technologies in the future vehicle industry and provides tax deductions for investments made in this industry to up to 25% for large and middle-standing enterprises and 35% for middle and small enterprises.

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

[News 1] Eight More Indicted in the Collapse Accident of the Jeongja Bridge in Bundang … Is It a “Serious Civil Accident?”
[The Financial News] For the Last Three Years, 236 Died in Collision Accidents … The MOEL Plans to Invest KRW 25 Billion in Collision Accidents Prevention
[The Herald Business] The KOSHA Strengthens Consulting for Small and Medium-sized Construction Sites to Introduce a Self-regulation Prevention System

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