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

Proposed by Rep. Yoon Han-hong (People Power Party)

● This amendment requires boards of directors to take steps to safeguard shareholders' interests when planning significant capital transactions, such as mergers, splits or comprehensive stock swaps and transfers. These steps include preparing and disclosing a written opinion that outlines the purpose, anticipated benefits and rationale behind such transactions.

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

Proposed by Rep. Kim Yong-man (Democratic Party of Korea)

● This amendment requires that when a listed company conducts a split-off IPO, preemptive rights be granted to at least 25 percent of the shares for the company’s 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 growing global competition for dominance in the semiconductor market, this bill proposes measures to strengthen Korea's semiconductor industry. It provides a legal basis for offering subsidies to the semiconductor sector and exempts workers in semiconductor R&D from standard working hour regulations.

Promulgated Bill: Defense Technology Security Act

Competent Authority: Ministry of National Defense

● This bill strengthens the protection of defense technology by establishing legal grounds to penalize individuals who possess unauthorized copies of defense technology data and refuse to delete them. It also increases penalties for leaking defense technology to foreign countries, mandating a minimum sentence of one year of imprisonment with labor and a fine of up to 2 billion won ($1.4 million).

Administrative Announcement: Rules on Decisions, Structures and Installation Criteria of Urban or Gun (County) Planning Facilities

Competent Authority: Ministry of Land, Infrastructure and Transport

● This bill relaxes regulations on the types of convenience facilities that can be included in urban or county-level planning areas. It allows delivery centers and indoor sports facilities to be located within these areas, provided they offer good accessibility.

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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