Proposed Bill: Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation

Proposed by Rep. Park Dae-chul (People Power Party)

● In consideration of the high interest rates and rising number of stock investors in the current economic landscape, this amendment proposes to cancel the upcoming implementation of the financial income tax system and maintain the current capital gains tax system. This bill is in line with President Yoon Suk Yeol's push to abolish the financial investment income tax. Earlier, President Yoon announced on Jan. 2 that he will push to scrap a new tax scheme to help promote investment in the country's stock market. Yoon said the country's stock markets are undervalued and do not match the global competitiveness of its companies. "I will make sure institutional problems do not prevent a proper assessment of our stock markets," Yoon said during a ceremony marking the first trading day of the year, referring to the financial investment income tax.

Proposed Bill: Special Act on Promotion of Haeorum Manufacturing Belt

Proposed by Rep. Lee Che-ik (People Power Party)

● To encourage balanced regional development and prevent depopulation in local regions, this bill proposes strategic measures to promote the Haeorum Manufacturing Belt. This entails providing incentives to key national industries and the energy sector within the region, as well as relaxing regulations about development restricted zones. The Haeorem Manufacturing Belt comprises areas of Pohang and Gyeongju city in North Gyeongsang Province and Ulsan metropolitan city.

Pending Bill: Special Act for Planned Offshore Wind Farms and Industry Promotion Act

Proposed by Rep. Han Moo-kyung (People Power Party)

● Offshore wind power has various advantages over conventional energy sources in terms of power efficiency and carbon emission. Therefore, this bill aims to expand the distribution of offshore wind power by enabling the government to proactively identify sites for offshore wind farms, provide support, raise local resident acceptance of offshore wind farms and unify all environmental evaluations under the Ministry of Oceans and Fisheries.

Promulgated Bill: Enforcement Decree of the Act on Fair Transactions in Large Retail Business

Competent Authority: Fair Trade Commission

● This bill prohibits large retail business entities from interfering with the transaction conditions between the supplier and other retail business entities or promotional events. It also prohibits activities by large retail business entities that restrict the independent management activities of suppliers, such as sales items, facility size, business hours, etc.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information

Competent Authority: Financial Services Commission

● This amendment enables the cancellation of the registration of virtual asset service providers in cases where they violate laws related to virtual assets, such as the Act on the Protection of Virtual Asset Users or the Financial Investment Services and Capital Markets Act, or where persons who are ineligible to hold executive positions under the Act on Corporate Governance of Financial Companies are found to be performing duties as an executive. The purpose is to protect users by responding to crimes abusing virtual assets and forming a healthy virtual asset market.

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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.