Legislation & Government Relations Consulting Center 2023-06-14
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Weekly Legislative Report (For the week of June 5, 2023 – June 9, 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 Act on Restriction of Special Taxation

⁠This Amendment offers support in the form of cash refunds equivalent to tax deductions to businesses that have invested in national strategy technologies, such as semiconductors, batteries, vaccines, and future vehicles, even if they fail to gain profit.

② Special Act on the Human Resources Innovation in High-Tech Industries

This Bill designates in-house universities and corporate human resource development institutions to strengthen the educational system where businesses self-nurture the talent they require while also laying the foundation for cultivating industry-leading human resources through industry specialized education and activation of demand-customized university courses, etc.

2. Pending Bill(s)

③ Partial Amendment to the Subsidy Management Act

This Amendment lowers the threshold amount of received subsidies that require subsidy project operators to verify their settlement report or submit an audit and inspection report from KRW 300 million to KRW 100 million and from KRW 1 billion to KRW 300 million, respectively.

3. Promulgated Bill(s)

④ Enforcement Decree of the Fair Agency Transactions Act

This Enforcement Decree broadens the range of penalty surcharge reductions for business operators who voluntarily correct unlawful acts and compensate for damages caused to agencies, allowing for a maximum reduction of 70 percent.

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

⑤ Partial Amendment to the Regulations on the Supervision of Retirement Pension

This Amendment reinforces the autonomous operation of defined contribution (DC) plans and individual retirement pension (IRP) plans, expands the scope of the products that can include up to 100 percent of reserves, and raises the permissible investment limit for employees when investing in the securities issued by an affiliated company of their employer.

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

[The Chosun Ilbo] Construction Company CEO Indicted for “Worker’s Fatal Fall” … First Application of the SAPA in Seoul
[The Hankyoreh] The Prime Contactor’s CEO Is Indicted Under the SAPA for the Worker’s Entrapment Accident in Boeun, Chungbuk
[Yonhap News] Police Investigation Reveals “Jeongja Bridge Collapse Due to Improper Maintenance”
[The Chosun Ilbo] “Risk Assessment” Is a Key Factor in SAPA Sentencing… CEOs Are Main Targets

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