(123rf)
Pending Bill: Partial Amendment to the Income Tax Act
Proposed by Rep. Park Dae-chul (People Power Party)
●This amendment proposes canceling the planned implementation of the financial income tax system next year, which imposes a 20-25 percent tax on capital gains from investments in financial investment products, such as stocks, bonds and funds, that are worth 50 million won ($38,230) or more.
The financial investment income tax, also known as the “geumtuse,” is a system that levies 20-25 percent of profits on investors who, regardless of whether they are major shareholders or not, earn more than a certain amount of income through financial investments such as stocks, bonds, funds and derivatives. It is set to commence in 2025 and stipulated that annual gains up to 50 million won would be subject to a 20 percent tax, escalating to 25 percent for gains exceeding 300 million won. However, earlier, President Yoon Suk Yeol had advocated for repealing this tax, echoing sentiments of individual investors who opposed its introduction during his campaign.
Promulgated Bill: Game Industry Promotion Act
Competent Authority: Ministry of Culture, Sports and Tourism
● This bill mandates businesses that produce, distribute or provide game products to display types of in-game items and information on the probability of obtaining these items on the game website and relevant game products in an easily understandable and accessible way for users.
Administrative Announcement: Enforcement Decree of the Special Act on Future Automotive Parts Transition and Ecosystem Development
Competent Authority: Ministry of Trade, Industry and Energy
●This bill expands the definition of future vehicles to include eco-friendly vehicles powered by electricity, solar, hybrid or hydrogen, including autonomous vehicles or vehicles with performance enhanced through software and information and communication technologies.
The Korea Automotive Technology Institute predicted that this bill will greatly help expand the scope of the automobile industry in the future. "This act encourages motor companies to diversify and expand their business outward. It also creates opportunities for new players from other industries to enter the motor industry," the KATI said in its report.
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The Korea Herald republishes a weekly legislative report by local law firm DR & AJU LLC to provide the latest information on bills approved, proposed, pending and set to be promulgated. -- Ed.
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For any queries about the bills, contact cr@draju.com.
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