Plenary Results
Plenary meeting passes bills including amendment to the Housing Lease Protection Act
- Jun 13, 2023
- 300
Plenary meeting passes bills including amendment to the Housing Lease Protection Act
- Amendment to the Pharmaceutical Affairs Act forms basis for designation of late-night public pharmacies and budget support
- Amendment to the Act on Restriction of Special Taxation expands tax credits for facility investment in the national strategic industry
The National Assembly of the Republic of Korea passed 60 items on its agenda, including 58 bills, during the 2nd plenary meeting of its 404th extraordinary session held on Mar. 30, 2023.
The major bills tabled for consideration were as follows:
<1> Amendment to the House Lease Protection Act
The amendment will mandate that lessors provide lessees with information about the date of obtaining the fixed date on the lease contract document, rent, deposit, etc. and certificates of tax payment, or agree to lessees’ request for access to unpaid taxes, overdue payments and local taxes paid. It will allow lessees to know whether any preferential deposit repayment at multi-unit housing exists and whether lessors have any overdue taxes.
To better protect lessees’ right to receive their deposit back, the amendment will also allow the execution of a leasehold registration order before the order is delivered to the lessor, corresponding to Article 292 (3) of the Civil Execution Act.
<2> Amendment to the Pharmaceutical Affairs Act
The amendment provides the basis for designating late-night public pharmacies that have been operated based on local statutes such as local government ordinances; to allow the use of drugs currently undergoing clinical trials overseas for treatment; to strengthen management of the promotion and sale of drugs, and to introduce a monitoring system for illegal online drug transactions.
Specifically, the mayors, governors, and heads of local governments will be able to designate public late-night pharmacies that sell drugs and quasi-drugs during late-night hours and on public holidays. The Minister of Health and Welfare or the mayors, governors, and heads of local governments will be able to provide support for all or part of the expenses needed to operate the late-night public pharmacies within the designated budget.
For persons with life-threatening diseases such as terminal cancer, or those experiencing an emergency, drugs currently in clinical trials overseas can be used with approval from the Minister of Food and Drug Safety and the patient’s consent.
In addition, the amendment mandates that drug marketers be registered as such; representatives, directors, and other employees of a corporate entity that provides drugs receive education about the sale of drugs; and the drug providers who entrust the work prepare the contracts and maintain records on evidential data for five years.
The Minister of Food and Drug Safety will also be able to monitor online drug transactions to check for illegal activity. If an illegal act is discovered, the Minister can instruct information and communications service providers to take the necessary actions as prescribed by Presidential Decree to notify customers that the transaction was intended to arrange for and promote the illegal distribution of drugs.
<3> Amendment to the Act on Restriction of Special Taxation
The approved bill seeks to amend the Act on Restriction of Special Taxation to designate hydrogen and future transportation methods as a national strategic technology sector, alongside semiconductors, secondary batteries, vaccines, and displays, and to expand tax credits for facility investment by conglomerates and mid-sized enterprises in a national strategic industry from the current 8 percent to 15 percent, and that of small- and medium-sized enterprises from the current 16 percent to 25 percent.
For special cases of investments made in the taxable year ending on December 31, 2023, if facility investment for the commercialization of national strategic technology exceeds the average investment made or the acquisition costs incurred in the three immediately preceding taxable years, additional tax credits for the equivalent shall be temporarily increased from the current 4 percent of the excess investment to 10 percent.
<4> Act on Supporting Mobility Innovation and Promotion*
The mobility sector is witnessing rapid changes as innovative technology in the transportation sector such as ICT and AI converges and is integrated, but applying such rapid innovations to transportation systems and services is limited by conventional regulations and policies.
The approved bill seeks to enact the Act on Supporting Mobility Innovation and Promotion,* which will enable the heads of Si/Gun/Gu (cities/counties/districts) to establish plans to improve the utilization of advanced mobility, and enable the Minister of Land, Infrastructure and Transport to designate mobility-specialized cities and extend to them administrative, fiscal, and technological support from the central and regional governments.
* Article 2 (7) of the Act concerns the mobility methods, infrastructures, services, and technology subject to advanced technology, which is distinguished from the existing transportation system.
* English translation of original Korean title is tentative.
The Act also allows those who start a business using new mobility technology to ask the Minister of Land, Infrastructure and Transport whether permission is needed. If no suitable standards, specifications, or requirements exist for the new mobility technology, they may file an application to conduct a special demonstration case with the Minister, and the Minister may grant a special demonstration case of up to two years following deliberation by the Mobility Innovation Committee.
<5> Amendment to the Sexual Violence Prevention and Victims Protection Act, etc.
① Amendment to the Sexual Violence Prevention and Victims Protection Act
At present, when the head of a State agency becomes aware that a case of sexual violence has occurred within a relevant agency, he/she shall notify the Minister of Gender Equality and Family of such fact without delay, unless the victim has any explicit dissenting opinions, and shall present measures aimed at preventing the recurrence of such acts to the Minister within three months of the date of learning such fact (Article 5-4 of the Act).
According to the amendment, measures to prevent the recurrence of sexual violence shall be submitted within one month of the date of their occurrence if the sexual violence is committed by the head of a state agency as prescribed by Presidential Decree. If notification of the occurrence of a sexual violence case is not made promptly or preventive measures are not submitted by the deadline, an administrative fine of up to KRW 5 million shall be imposed, heightening expectations of faster and stronger responses to such cases.
② Amendment to the Vocational Education and Training Promotion Act
On-the-job trainees are provided with protections that correspond to those provided to employees, in accordance with the Labor Standards Act, but the need for better protections has been recognized. The amendment mandates the application of Article 9 (Elimination of Intermediary Exploitation) and Article 36 (Settlement of Payments), by which the instructor or head of a vocational education and training institution who receives a report of the occurrence of workplace harassment can ask the head of the on-the-job training agency to promptly launch an investigation in accordance with the Labor Standards Act.
③ Amendment to the Broadcasting Act
Under the Broadcasting Act, a CATV broadcasting business may operate a local channel but is prohibited from releasing reports other than local reports, commentaries, and examinations of a specific issue.
The amendment, however, allows a local channel to arrange and transmit reports by public channels, commentaries and examinations, or other broadcast programs, raising expectations of easier public access to information about national policies and an improved social service function by local channels.
④ Amendment to the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Mid-Sized Enterprises
The amendment shall delete the Act’s period of validity for continuous support for mid-sized enterprises. To strengthen the international competitiveness of mid-sized enterprises, specialized institutions shall be allowed to implement projects that support corporate social responsibility (CSR) and sustainable business management.
⑤ Amendment to the Road Traffic Act
To prepare for the future growth of the robotics industry, the amendment shall define ‘outdoor mobile robots’ and include them in the category of pedestrians for their movement on sidewalks and fulfillment of legal duties. A person who drives, operates, and manages a robot shall have the duty to operate the robot safely and accurately.
Moreover, the amendment shall add alternative educational institutions to the list of places subject to designation as child protection areas, mandate a traffic environment survey that includes examination of the occurrence of traffic accidents in child/elderly/disabled person protection areas at least once a year, and reflect the results of such surveys in the designation, management, and delisting of such protection areas.
- Amendment to the Pharmaceutical Affairs Act forms basis for designation of late-night public pharmacies and budget support
- Amendment to the Act on Restriction of Special Taxation expands tax credits for facility investment in the national strategic industry
The National Assembly of the Republic of Korea passed 60 items on its agenda, including 58 bills, during the 2nd plenary meeting of its 404th extraordinary session held on Mar. 30, 2023.
The major bills tabled for consideration were as follows:
<1> Amendment to the House Lease Protection Act
The amendment will mandate that lessors provide lessees with information about the date of obtaining the fixed date on the lease contract document, rent, deposit, etc. and certificates of tax payment, or agree to lessees’ request for access to unpaid taxes, overdue payments and local taxes paid. It will allow lessees to know whether any preferential deposit repayment at multi-unit housing exists and whether lessors have any overdue taxes.
To better protect lessees’ right to receive their deposit back, the amendment will also allow the execution of a leasehold registration order before the order is delivered to the lessor, corresponding to Article 292 (3) of the Civil Execution Act.
<2> Amendment to the Pharmaceutical Affairs Act
The amendment provides the basis for designating late-night public pharmacies that have been operated based on local statutes such as local government ordinances; to allow the use of drugs currently undergoing clinical trials overseas for treatment; to strengthen management of the promotion and sale of drugs, and to introduce a monitoring system for illegal online drug transactions.
Specifically, the mayors, governors, and heads of local governments will be able to designate public late-night pharmacies that sell drugs and quasi-drugs during late-night hours and on public holidays. The Minister of Health and Welfare or the mayors, governors, and heads of local governments will be able to provide support for all or part of the expenses needed to operate the late-night public pharmacies within the designated budget.
For persons with life-threatening diseases such as terminal cancer, or those experiencing an emergency, drugs currently in clinical trials overseas can be used with approval from the Minister of Food and Drug Safety and the patient’s consent.
In addition, the amendment mandates that drug marketers be registered as such; representatives, directors, and other employees of a corporate entity that provides drugs receive education about the sale of drugs; and the drug providers who entrust the work prepare the contracts and maintain records on evidential data for five years.
The Minister of Food and Drug Safety will also be able to monitor online drug transactions to check for illegal activity. If an illegal act is discovered, the Minister can instruct information and communications service providers to take the necessary actions as prescribed by Presidential Decree to notify customers that the transaction was intended to arrange for and promote the illegal distribution of drugs.
<3> Amendment to the Act on Restriction of Special Taxation
The approved bill seeks to amend the Act on Restriction of Special Taxation to designate hydrogen and future transportation methods as a national strategic technology sector, alongside semiconductors, secondary batteries, vaccines, and displays, and to expand tax credits for facility investment by conglomerates and mid-sized enterprises in a national strategic industry from the current 8 percent to 15 percent, and that of small- and medium-sized enterprises from the current 16 percent to 25 percent.
For special cases of investments made in the taxable year ending on December 31, 2023, if facility investment for the commercialization of national strategic technology exceeds the average investment made or the acquisition costs incurred in the three immediately preceding taxable years, additional tax credits for the equivalent shall be temporarily increased from the current 4 percent of the excess investment to 10 percent.
<4> Act on Supporting Mobility Innovation and Promotion*
The mobility sector is witnessing rapid changes as innovative technology in the transportation sector such as ICT and AI converges and is integrated, but applying such rapid innovations to transportation systems and services is limited by conventional regulations and policies.
The approved bill seeks to enact the Act on Supporting Mobility Innovation and Promotion,* which will enable the heads of Si/Gun/Gu (cities/counties/districts) to establish plans to improve the utilization of advanced mobility, and enable the Minister of Land, Infrastructure and Transport to designate mobility-specialized cities and extend to them administrative, fiscal, and technological support from the central and regional governments.
* Article 2 (7) of the Act concerns the mobility methods, infrastructures, services, and technology subject to advanced technology, which is distinguished from the existing transportation system.
* English translation of original Korean title is tentative.
The Act also allows those who start a business using new mobility technology to ask the Minister of Land, Infrastructure and Transport whether permission is needed. If no suitable standards, specifications, or requirements exist for the new mobility technology, they may file an application to conduct a special demonstration case with the Minister, and the Minister may grant a special demonstration case of up to two years following deliberation by the Mobility Innovation Committee.
<5> Amendment to the Sexual Violence Prevention and Victims Protection Act, etc.
① Amendment to the Sexual Violence Prevention and Victims Protection Act
At present, when the head of a State agency becomes aware that a case of sexual violence has occurred within a relevant agency, he/she shall notify the Minister of Gender Equality and Family of such fact without delay, unless the victim has any explicit dissenting opinions, and shall present measures aimed at preventing the recurrence of such acts to the Minister within three months of the date of learning such fact (Article 5-4 of the Act).
According to the amendment, measures to prevent the recurrence of sexual violence shall be submitted within one month of the date of their occurrence if the sexual violence is committed by the head of a state agency as prescribed by Presidential Decree. If notification of the occurrence of a sexual violence case is not made promptly or preventive measures are not submitted by the deadline, an administrative fine of up to KRW 5 million shall be imposed, heightening expectations of faster and stronger responses to such cases.
② Amendment to the Vocational Education and Training Promotion Act
On-the-job trainees are provided with protections that correspond to those provided to employees, in accordance with the Labor Standards Act, but the need for better protections has been recognized. The amendment mandates the application of Article 9 (Elimination of Intermediary Exploitation) and Article 36 (Settlement of Payments), by which the instructor or head of a vocational education and training institution who receives a report of the occurrence of workplace harassment can ask the head of the on-the-job training agency to promptly launch an investigation in accordance with the Labor Standards Act.
③ Amendment to the Broadcasting Act
Under the Broadcasting Act, a CATV broadcasting business may operate a local channel but is prohibited from releasing reports other than local reports, commentaries, and examinations of a specific issue.
The amendment, however, allows a local channel to arrange and transmit reports by public channels, commentaries and examinations, or other broadcast programs, raising expectations of easier public access to information about national policies and an improved social service function by local channels.
④ Amendment to the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Mid-Sized Enterprises
The amendment shall delete the Act’s period of validity for continuous support for mid-sized enterprises. To strengthen the international competitiveness of mid-sized enterprises, specialized institutions shall be allowed to implement projects that support corporate social responsibility (CSR) and sustainable business management.
⑤ Amendment to the Road Traffic Act
To prepare for the future growth of the robotics industry, the amendment shall define ‘outdoor mobile robots’ and include them in the category of pedestrians for their movement on sidewalks and fulfillment of legal duties. A person who drives, operates, and manages a robot shall have the duty to operate the robot safely and accurately.
Moreover, the amendment shall add alternative educational institutions to the list of places subject to designation as child protection areas, mandate a traffic environment survey that includes examination of the occurrence of traffic accidents in child/elderly/disabled person protection areas at least once a year, and reflect the results of such surveys in the designation, management, and delisting of such protection areas.
The work is available according to the 'Public Nuri' source indication-commercial availability-transformable conditions
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