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 specifies the directors' duty to protect shareholders' interests by stating that, in cases of the four activities prescribed under the Financial Investment Services and Capital Markets Act (merger, significant business transaction, all-inclusive swap or transfer of stocks, and split-off or split and merger), directors must endeavor to protect shareholders' legitimate interests.
 
② Partial Amendment to the Financial Investment Services and Capital Markets Act

This Amendment stipulates that in cases where new shares are publicly offered to list a company established by a carve-out on the stock market, the preemptive right to at least 25/100 of the publicly offered shares shall be offered to the parent corporation’s minority shareholders who did not request stock buyback during the carve-out.

2. Pending Bill(s)
 
③ Special Act on Strengthening Competitiveness and Promoting Innovative Growth in the Semiconductor Industry

This Bill enables the State and local governments to swiftly develop and support industrial infrastructure, such as electricity and water supply, with financial support, including subsidies, to strengthen the competitiveness of the semiconductor industry. It also allows for the exclusion of R&D workers in the semiconductor industry from the 52-hour weekly working limit, provided there is an agreement between the worker and the company.
 
3. Promulgated Bill(s)
 
④ Defense Technology Security Act
 
This Bill strengthens the penalties for the leak of defense technology, changing the punishment from "up to 20 years of imprisonment with labor or a fine not exceeding KRW 2 billion" to "at least 1 year of imprisonment with labor for a limited term and a fine not exceeding KRW 2 billion."

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

⑤ Rules on Decisions, Structures, and Installation Criteria of Urban or Gun Planning Facilities

This Bill eases regulations to allow various convenience facilities, such as delivery facilities and indoor sports facilities, to be installed within urban planning facilities with good accessibility, such as bus terminals.

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
 
[Law Times] When Will the Constitutional Court’s Decision Be Made? SAPA Investigations and Trials Remain Pending
[Newsis] Seoul Facilities Corporation Introduces “Safety Management System” to Identify Hazards Before Work

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