The Korea Herald


[Bills in Focus] Bills to promote software, high-tech industries

By Korea Herald

Published : Dec. 18, 2023 - 11:37

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Proposed Bill: Partial Amendment to the Software Promotion Act

Proposed by Rep. Yoon Doo-hyun (People Power Party)

● This amendment aims to minimize quality problems in software projects by allowing companies to participate in public domain software projects based on capacity. It exceptionally allows large enterprises to engage in design and planning projects that are ordered separately from software development projects. It also allows companies belonging to business groups subject to cross-shareholding limitations to participate in large-scale projects.

Proposed Bill: Partial Amendment to the Korea Development Act

Proposed by Rep. Yu Eui-dong (People Power Party)

● Although the Key Industry Stabilization Fund was established to support key industrial enterprises during COVID-19, only 2 percent of the total 40 trillion won ($30.78 billion) was used during the pandemic. Amid the growing need to invest in national high-tech strategic industries to maintain Korea’s market competitiveness, this amendment aims to allocate funds from the Key Industry Stabilization Fund to support the development of high-tech industries, such as batteries, semiconductors, and biotechnology.

Pending Bill: Partial Amendment to the Serious Accidents Punishment Act

Proposed by Rep. Lim Lee-ja (People Power Party)

● The Serious Accidents Punishment Act would become applicable to small and medium-sized enterprises starting from 2024. However, due to shortages in human and financial resources, it is realistically difficult for small and medium-sized companies to comply with the SAPA, which makes them vulnerable to business closure. Therefore, this amendment postpones the enforcement of the SAPA for businesses with fewer than 50 employees by an additional two years.

Promulgated Bill: Enforcement Decree of the Act on the Improvement of Urban Areas and Residential Environments

Competent Authority: Ministry of Land, Infrastructure and Transport

● This bill creates improvement zones near public transportation stations with benefits such as a relaxation in floor area ratio requirements and construction regulations. It also requires an increased number of housing units in these improvement zones, to be sold as public housing.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Fair Transactions in Franchise Business Act

Competent Authority: Fair Trade Commission

● This amendment requires franchisers to engage in prior consultation with the franchisees when they intend to modify transaction conditions in a manner that adversely affects the franchisees and mandates the procedures for such consultations to be predefined in the terms of the franchise agreement.

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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