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

Proposed by Rep. Kim Hyun-jung (Democratic Party of Korea)

  • This bill would establish a legal basis for the Financial Services Commission to order products with a leverage ratio above one time to adjust their leverage during periods of market volatility. It would also allow collective investment business entities to bypass procedures such as convening a general meeting of beneficiaries when implementing the FSC's leverage adjustment order.

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

Proposed by Rep. Park Hong-bae (Democratic Party of Korea)

  • This bill would exempt the exercise of voting rights delegated through institutional investors’ public proxy solicitations from the five-percent reporting rule.

Pending Bill: Class Action Act

Proposed by Rep. Park Kyoon-taek (Democratic Party of Korea)

  • This bill would establish a comprehensive class action regime applicable to all types of damages claims and permit its retroactive application to claims arising from events that occurred prior to its enforcement.

Promulgated Bill: Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information

Competent Authority: Financial Services Commission, Ministry of Justice

  • This promulgated bill requires virtual asset service providers to provide relevant transaction information for all virtual asset transfers, regardless of the transaction amount.

Administrative Announcement: Partial Amendment to the Income Tax Act

Competent Authority: Ministry of Finance and Economy

  • This draft amendment would establish productive finance individual savings accounts with a 10-year contribution period and no carryover of unused limits. It would also temporarily lower the additional capital gains tax rates for multi-homeowners through 2028 and apply a flat 15 percent tax credit for young people’s pension contributions.

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The Korea Herald republishes a weekly legislative report by local law firm D&A LLC to provide the latest information on bills approved, proposed, pending and set to be promulgated. — Ed.

For queries about the bills, contact cr@draju.com.