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 Commercial Act
This Amendment expands the scope of directors' duty of loyalty towards the "company" to encompass both the "company and shareholders." It introduces a provision prescribing that "a director shall protect the interests of all shareholders when performing their duties and shall treat all shareholders' interests equally.”
② Partial Amendment to the Act on Promotion of Information and Communications Network Utilization and Information Protection
This Amendment strengthens the duty of foreign entrepreneurs that generate over a certain level of traffic data to designate a domestic agent.
2. Pending Bill(s)
③ Partial Amendment to the Depositor Protection Act
This Amendment increases the maximum insurance coverage amount from KRW 50 million to KRW 100 million.
3. Promulgated Bill(s)
④ Enforcement Decree of the Financial Investment Services and Capital Markets Act
This Bill excludes mergers with non-affiliated companies from the calculation formula for the merger price and mandates external assessments for such mergers. It also requires mergers between affiliated companies to obtain audit consent when designating external assessment institutions.
4. Bill(s) Undergoing Pre-Announcement of Legislation/Administration
⑤ Partial Amendment to the Enforcement Decree of the Financial Investment Services and Capital Markets Act
This Amendment mandates institutional investors to establish a computing system to prevent naked short selling, with violations subjecting financial investment business institutions, along with their executives and staff, to measurements and administrative fines set at a base amount of KRW 100 million. It also requires institutions and foreign entities to repay the stocks they borrow for short sales within 90 days.
5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
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