
Proposed Bill: Partial Amendment to the Monopoly Regulation and Fair Trade Act
Proposed by Rep. Yoon Han-hong (People Power Party)
●The current act imposes disclosure obligations on certain business groups and the person with de facto control over the group. This amendment clarifies the scope of subjects liable under the act, excluding companies managed by outside directors of affiliates or executive officers of nonprofit corporations from the definition of “business group.”
Propsed Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act
Proposed by Rep. Kim Nam-geun (Democratic Party of Korea), Rep. Shin Chang-sik (Rebuilding Korea Party) and Rep. Han Chang-min (Social Democratic Party)
●This amendment introduces measures to protect general shareholders in situations like delisting, paid-in capital increase, convertible bond issuance, mergers, spinoffs, postsplit mergers and business or asset transfers and acquisitions. It also introduces a general provision requiring directors to act faithfully in shareholders’ interest to prevent legal loopholes and ensure broader protection.
Pending Bill: Act on Special Measures to Strengthen and Support the Semiconductor Industry Ecosystem
Proposed by Rep. Kim Tae-nyeon (Democratic Party of Korea)
●This bill enacts a special act to bolster national support for the semiconductors industry. It obligates the state to support the establishment of infrastructure in special semiconductor zones and offers special exemptions from preliminary feasibility surveys and expedited authorization processes.
Promulgated Bill: Enforcement Decree of the Credit Unions Act
Competent Authority: Financial Services Commission
●This bill increases the proportion of repayment reserves that credit unions are required to deposit with the National Credit Union Federation of Korea from 50 percent to 80 percent of the total repayment reserves held by credit unions.
Administrative Announcement: Enforcement Decree of the Financial Investment Services and Capital Markets Act
Competent Authority: Financial Services Commission
●This bill bans individuals engaged in unfair capital market practices, such as stock price manipulation, unfair transactions using undisclosed information and illegal short selling, from participating in financial investment instrument transactions or being appointed as executive officers of listed companies and financial institutions for up to five years.
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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