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[Bills in Focus] Bills to promote strategic technologies, fair app market

By Korea Herald

Published : March 11, 2024 - 11:08

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Proposed Bill: Partial Amendment to the Telecommunications Business Act

Proposed by Rep. Lee Kai-ho (Democratic Party of Korea)

● To promote fair market order in the app market and prevent app market business entities from taking unfair advantage of their transactional position, this amendment prohibits app market business entities with their own operating business from unjustly limiting the installation and utilization of applications on smartphones or tablet PCs through other app market business entities.

In other words, some operating systems currently restrict or prohibit the installation of apps through other app markets, and this bill regulates these restrictions. For example, currently, iPhone users can only install other apps through Apple's own "App Store," and this bill aims to regulate the operation of such closed app markets.

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

Proposed by Rep. Kim Byung-wook (Democratic Party of Korea)

● A 1+1 preferential right to residence is granted to certain association members to facilitate the obtainment of consent for urban housing supply expansion or redevelopment projects. For example, when apartments are redeveloped into smaller-sized apartments, 1+1 preferential residency rights are granted to those who used to own larger houses. However, individuals with a 1+1 preferential right to residence are currently considered multi-housing owners and face heavier taxation when transferring preferential rights. This amendment excludes housing acquired through a 1+1 preferential right to residence from the total number of owned houses used to determine the transfer income tax.

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

Proposed by Rep. Yang Hyang-ja (New Reform Party)

● As the U.S. and China proactively make regulatory efforts to bolster their national semiconductor industry, there have been worries about the declining competitiveness of Korea’s high-tech strategic industry. Therefore, this amendment aims to facilitate the growth of national strategic technologies by extending the period of tax exemption for research and development expenses and facility investment in relevant fields to December 31, 2030.

Promulgated Bill: Fair Transactions in Subcontracting Act

Competent Authority: Fair Trade Commission

● This bill requires a prime contractor that unfairly uses technical data acquired from a subcontractor for their own benefit or for a third party or provides such data to a third party to compensate up to a maximum of five times the loss inflicted upon the subcontractor.

Administrative Announcement: Enforcement Decree of the Act on the Promotion of Utilization and Support of Urban Air Mobility

Competent Authority: Ministry of Land, Infrastructure and Transport

● This bill authorizes the National Traffic Council to designate demonstration project zones and pilot operation zones for urban air mobility. It subdivides the procedures for regulatory exceptions and requires an opinion-gathering process from local governments and residents before a region can apply to be a pilot operation zone.

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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.