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

Proposed by Rep. Yoon Hu-duk (Democratic Party of Korea), Yoon Han-hong (People Power Party)

  • This bill would provide income tax and corporate tax credits to companies that produce and sell seven key strategic products in Korea, including electric vehicles, secondary batteries and semiconductors.

Proposed Bill: Special Act on the Designation and Operation of Mega-Regional Strategic Industrial Special Zones for Local-Led Growth

Proposed by Rep. Choi Ki-sang (Democratic Party of Korea)

  • This bill would establish a legal framework for designating and supporting mega-regional strategic industrial special zones. It would also introduce regulatory exemptions and financial, fiscal and tax incentives to encourage investment in high-tech industries in nonmetropolitan areas.

Pending Bill: Class Action Act

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

  • This bill would expand the scope of the class action regime, currently limited to the securities sector, to cover all damages claims. It would also provide for the regime’s retroactive application to claims arising from events occurring before its entry into force.

Promulgated Bill: Partial Amendment to the Occupational Safety and Health Act

Competent Authority: Ministry of Employment and Labor

  • This bill, which was announced in October and will go into effect in April 2027, imposes an administrative surcharge of up to 5 percent of a company’s average operating profit over the preceding three years if three or more workers die from industrial accidents within a one-year period as a result of the company’s failure to comply with its safety and health obligations.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Korea Development Bank Act

Competent Authority: Financial Services Commission

  • This draft amendment would expand the scope of industries eligible for support from the National Growth Fund to include the space and aerospace and quantum industries.

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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