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 from solely the company to both the company and its shareholders. It also limits the voting rights of the largest shareholder to three percent in the appointment of audit committee members.
 
② Partial Amendment to the Financial Investment Services and Capital Markets Act

This Amendment reduces the borrowing limit for private equity funds from 400% to 200% of their net asset value.

2. Pending Bill(s)
 
③ Partial Amendment to the Distribution Industry Development Act

This Amendment mandates the head of a Si/Gun/Gu to designate compulsory closedown dates and impose business hour restrictions on superstores while requiring that the compulsory closedown dates be selected from holidays.
 
3. Promulgated Bill(s)
 
④ Act on the Improvement of Urban Areas and Residential Environments
 
This Bill permits the initiation of reconstruction projects for apartment buildings over 30 years old without requiring safety inspections.

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

⑤ Partial Amendment to the Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources

Effective January 1, 2026, this Amendment requires manufacturers and importers of plastic toys to recover and recycle the products at a mandatory recycling rate calculated and announced annually by the Ministry of Environment.

5. Serious Accidents Punishment Act ("SAPA") Related Editorials and Columns from Major Dailies
 
[The Chosun Ilbo] President Lee States, “Those Responsible for Preventable Serious Accidents Will Be Held Strictly Accountable”

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