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 lc@draju.com.
1. Proposed Bill(s)
① Partial Amendment to the Financial Investment Services and Capital Markets Act
This Amendment prohibits stock-listed corporations from offering call options to their largest shareholder or affiliated persons in issuing convertible bonds (CB) or bond with warrant (BW). It also requires corporations that obtained callable CBs before the expirations to retire them without delay.
② Partial Amendment to the Financial Investment Services and Capital Markets Act
This Amendment mandates the return of short-swing profits acquired by executive officers or employees of stock-listed companies.
2. Pending Bill(s)
③ Partial Amendment to the Financial Investment Services and Capital Markets Act
This Amendment recognizes security tokens based on distributed ledger technology as a type of digited securities and encompasses the relevant markets, including the issuance and distribution, to the application subject to the Act.
3. Promulgated Bill(s)
④ Act on Developing and Using Station’s Sphere of Influence
This Amendment includes the expenses incurred for the relocation or installation of railroad facilities in a project for developing the station's sphere of influence to the costs for re-investment of gains from the development of the station's sphere of influence.
4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration
⑤ Partial Amendment to the Enforcement Decree of the Asset-Backed Securitization Act
This Amendment specifies the requirements for corporations who are able to issue asset-backed securities as corporations having at least KRW 50 billion in assets, impaired capital rate below 50 percent, and having received a qualified audit opinion while excluding the credit rating of the asset holder.
5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
