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 Game Industry Promotion Act
 
This Amendment requires game companies to store records of users’ probabilistic item acquisition results for at least three years and to disclose users’ past acquisition records.
 
② Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation

This Amendment provides that when a domestic taxpayer incurs expenses for subcontractors, pursuant to the Presidential Decree, to prevent industrial accidents, an amount equal to 3/100 of those expenses (or 6/100 for middle-standing enterprises and 12/100 for SMEs) shall be deducted from the income tax or corporate tax for the taxable year in which the expenditure is made.

2. Pending Bill(s)
 
③ 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 the 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.
 
3. Promulgated Bill(s)
 
④ National Pension Act
 
This Bill increases the contribution rate of the national pension from 9% to 13%, raising the nominal income replacement rate from 40% to 43%.

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

⑤ Partial Amendment to the Enforcement Decree of the Act on Registration of Credit Business and Protection of Finance Users

This Amendment invalidates in its entirety the principal and interest of an ultra-high interest rate loan agreement where the total interest exceeds the principal amount (i.e., an annual interest rate of 100% or more).

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
 
[The Korea Economic Daily] Prosecution Concludes “Fatal Golf Ball Accident at Golf Course” Does Not Constitute a Serious Civic Accident
[Yonhap News] Citizens’ Coalition for Economic Justice Calls for Legal Reform, As Sinkhole Accidents Are Not Held to Serious Accident Liability
[The Korea Economic Daily] Gyeonggi Housing & Urban Redevelopment Corporation Introduces “Airbag Safety Vests” at Urban Development Site Near Gwanyang High School

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