Proposed Bill: Partial Amendment to the Commercial Act

Proposed by Rep. Park Ju-min (Democratic Party of Korea)

● Under the current Commercial Act, major shareholders’ voting rights are capped at 3 percent when appointing an auditor. To better represent the interests of minority shareholders, this amendment seeks to extend the “3 percent rule” to apply during mergers between affiliated companies.

Proposed Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act

Proposed by Rep. Kang Jun-hyeon (Democratic Party of Korea)

● This amendment requires that when a listed company conducts a split-off initial public offering, preemptive rights be granted to at least 70 percent of the shares for minority shareholders who did not request a stock buyback.

Pending Bill: Special Act on Strengthening Competitiveness and Promoting Innovative Growth in the Semiconductor Industry

Proposed by Rep. Lee Chul-gyu (People Power Party)

● Amid intensifying global competition for dominance in the semiconductor market, this bill proposes various measures to support Korea’s semiconductor industry. It establishes a legal basis for providing subsidies to the semiconductor industry and exempts workers in semiconductor R&D from standard working hour regulations.

Promulgated Bill: Enforcement Decree of the Specialized Credit Finance Business Act

Competent Authority: Financial Services Commission

● This bill expands the permitted business activities of specialized credit finance companies, such as card companies. The amendment allows these companies to offer corporate credit inquiry services alongside their existing operations.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Occupational Safety and Health Act

Competent Authority: Ministry of Employment and Labor

● This amendment introduces stricter reporting requirements for businesses. It mandates that companies notify the government if they terminate a contract with a specialized safety and health institution or dismiss a safety officer, health officer or occupational medicine doctor. Additionally, companies involved in the installation or dismantling of tower cranes must report any changes in their workforce.

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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