Legislation & Government Relations Consulting Center 2023-09-13
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Weekly Legislative Report (For the week of September 4, 2023 – September 8, 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 ⁠Act on Human Rights and Environment Protection for Sustainable Business Administration of Corporations

This Bill requires companies to create strategies for implementing human rights and environmental due diligence, including the appointment of a responsible manager. It also mandates the establishment of a committee tasked with deliberating plans and results regarding human rights and environmental due diligence.

② Environmental, Social, and Governance Management Promotion Act

This Bill prescribes the responsibilities of the State, local governments, corporations, and financial institutions to promote ESG management and investment. It also requires the government to foster and implement a master plan to promote ESG management every five years, establish the ESG Promotion Committee under the Prime Minister, and establish guidelines for human rights and environmental due diligence and information disclosure criteria.

2. Pending Bill(s)

③ Partial Amendment to the Depositor Protection Act

This Amendment requires the deposit insurance coverage limit for the protection of depositors to be separately determined by financial business type, but no less than KRW 100 million. The Amendment also requires such limits to be reviewed for appropriateness every five years.

3. Promulgated Bill(s)

④ Enforcement Decree of the Restitution of Development Gains Act

This Bill raises the threshold for development charges applied to development projects conducted in a Metropolitan City outside the Seoul Metropolitan area or Sejong City by 51.5 percent (from 660 square meters to 1,000 square meters) if the project receives authorization between September 1, 2023, and December 31, 2024.

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

⑤ Partial Amendment to the Enforcement Decree of the Income Tax Act

This Amendment stipulates that members of trade unions can receive tax credits on membership fees paid from this October to this December if the trade unions and their affiliated organizations disclose their 2022 accounting settlement report through the public disclosure system, which will be launched on the 1st of this October.

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

[Seoul Shinmun] Underpass Excluded from the SAPA Application, Falling 5 Meters Short
[The Korea Economic Daily] Proposed Amendment Suggesting a 2-Year Grace Period for Expanded SAPA Application to Businesses with Fewer Than 50 Employees
[Yonhap News] Construction Companies Found “Guilty Under the SAPA” Will Face a 10% Deduction in Their Construction Competency Assessment

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