Plenary passes 94 items including the Special Act on Support  for Home Rental Scam Victims and Residential Stability

-  Special Act on Support for Home Rental Scam Victims and Residential Stability* to stipulate the preemptive right to purchase a home for 

    public sale or auction 

-  Amendment to the Public Service Ethics Act to include requirement that public officials register or report digital assets

-  Amendment to the Korea Racing Authority Act* to legalize online betting on horse races

During the 1st plenary meeting of the 406th extraordinary session, held on May 25, 2023, the National Assembly passed 94 agenda items, including 92 bills. Following are the major bills tabled for consideration:

* English translation of original Korean titles is tentative. 

<1> Special Act on Support for Home Rental Scam Victims and Residential Stability*

The Special Act determines who receives support through the Committee on Support for Home Rental Scam Victims* (hereinafter, “the Committee”) and promotes residential stability for victims at risk of eviction, by granting an exception to public sale or auction procedures and taxation. 

* English translation of original Korean titles is tentative. 

Under the Special Act, victims of home rental scams will be granted support if they file an application with the Minister of Land, Infrastructure and Transport (hereinafter, “the Minister”) and are then confirmed as lessees who satisfy the required conditions** following the Minister’s investigation and the Committee’s deliberation and meeting. 

** ① The lessee shall obtain a fixed date on the lease contract (including the leasehold registration) after completing transfer of a home and resident registration; ② The deposit shall be less than KRW 500 million; ③ The majority of lessees did not receive or are expected to not receive a claim for repayment of deposit due to a lessor who went bankrupt or resumption of rehabilitation process; ④ It is highly suspected that the lessor had the intention to not fulfill deposit repayment, such as a case in which the lessor is placed under investigation.

Specifically, the Special Act provides grounds for suspension of auction procedures; suspension of selling attached home due to delinquency of a national or local tax; distribution and imposition of a national or local tax on all homes of the lessor up for auction in proportion to each price.

To promote residential stability for home rental scam victims at risk of eviction, the Special Act grants the victim the preemptive right to purchase homes used in scams during public sale or auction procedures. If a public housing project operator purchases a home at the victim’s request, the home may be provided to the victim as public rental housing under the Special Act on Public Housing.

In addition, the Korea Housing & Urban Guarantee Corporation offers a service to support public sale and auction procedures at the victim’s request, and state and local governments are permitted to lend necessary funds and other support for victims’ immediate residential stability. 

<2> Amendment to the Public Service Ethics Act and the National Assembly Act

The amendment to the Public Service Ethics Act is intended to add digital assets to the list of property that is required to be registered or reported by state public officials in political service, such as the President, the Prime Minister, members of the State Council, and members of the National Assembly, as prescribed in subparagraph 3 of Article 2 of the Act of Reporting and Using Specified Financial Transaction Information (hereinafter referred to as the “Specified Financial Information Act).

A person liable for registration shall file a report on transactions for the acquisition or transfer of virtual assets, at the time of reporting on property changes. For the registration or reporting of property, the public service ethics committee may request data on the balance during transactions from the head of a virtual asset service provider, if required. 

The head of a state agency or a local government may restrict the possession of virtual assets by a public official and his/her interested parties who are in divisions or positions deemed to perform affairs that can acquire information about virtual assets or exercise influence. The public service ethics committee may recommend improvements to the restrictions scheme. 

Under the amendment to the National Assembly Act, virtual assets owned by the National Assembly member, his/her spouse, or a linear ascendant or descendant in a percentage or amount more than that prescribed by National Assembly Regulations, and the list of issuers shall be added to the list for registration of private-capacity interests. A member shall register, prior to June 30, 2023, the current status of and changes to his/her virtual asset holdings with the Ethics Investigation Advisory Committee – changes during the period from the date they were elected to the position to May 31, 2023. The Committee shall examine whether conflicts of interest exist under the amendment and submit its opinions to the Speaker, the relevant National Assembly members, and representative members of the negotiating party to which the relevant National Assembly member belongs by July 31.

<3> Amendment to the Korea Racing Authority Act* 

The approved amendment enables the introduction of an e-ticketing system for horse race betting to meet the demand for virtual service and attract users away from illegal online horse racing betting sites. 

Specifically, the amendment allows the Korea Racing Authority to issue e-tickets for online horse race betting at places excluding racecourses and off-track betting facilities. 

To do so, the Authority shall establish an e-ticket system operation plan on an annual basis to manage system operation and protect users against addiction and excessive indulgence, while securing approval from the Minister of Agriculture, Food and Rural Affairs. The Minister may issue a corrective order to the Authority if it does not implement the operation plan and take any necessary measures such as stopping the issuance of tickets. 

* English translation of original Korean titles is tentative. 

<4> Special Act on the Promotion of Distributed Energy* 

The approved bill to enact the Special Act stipulates general aspects of distributed energy that produces and consumes power in a region, unlike the existing centralized energy system. 

Specifically, the Minister of Land, Infrastructure and Transport (hereinafter referred to as “the Minister”) is allowed to order a housing site developer to submit an installation plan for distributed energy facilities to use a certain percentage of distributed energy and determine which region(s) is/are subject to the obligation. In the event a developer does not meet the mandatory installation ratio, the Minister may impose penalty surcharges. 

The Special Act also enables the designation of specialized areas for distributed energy by the Minister upon application from mayors or governors. Distributed energy business entities that have installed generation facilities in a specialized area are allowed to supply power directly to users, and in the event of an excess or shortage of power, to conduct business with electric sales business entities. 

When preparing the basic terms and conditions of supply under the Electric Utility Act for balanced national development, the electric sales business entity may determine electric rates differently, in consideration of transmission or distribution cost(s). 

* English translation of original Korean titles is tentative. 

<5> Special Act on Local Autonomy and Decentralization, and Balanced Local Development* 

The approved bill to enact the Special Act aims to integrate the Special Act on Local Autonomy and Decentralization and Restructuring of Local Administrative Systems and the Special Act on Balanced National Development into one and abolish the two existing Acts. 

Specifically, the Special Act mandates that the Presidential Committee for Decentralization and Balanced Development be installed for five years of operation, and shall comprise 18 ex officio members and fewer than 21 commissioned members. The committee shall establish a master plan through integration plans on decentralization and balanced development, and for related projects a special account shall be established and operated for balanced local development. 

* English translation of original Korean titles is tentative. 

<6> Amendment to the Venture Investment Promotion Act 

The amendment is to provide a system for meeting various funding demands from businesses in the early and growth stages.  

The amended Act establishes the grounds for a contract on conditional conversion of an equity interest satisfying the requirements prescribed by the Ordinance of the Ministry of SMEs and Startups to support early-stage businesses in attracting funds. 

Regulations on a conditional loan contract have been created for a corporation unlisted in a securities market and that has received or is scheduled to receive a venture investment by methods determined and publicly notified by the Minister of SMEs and Startups. 

<7> Amendment to the Creation and Management of Forest Resources Act 

Following a series of forest fires, there is a recognized need for institutional improvements to initiate forestry projects intended to prevent forest fires and other damages. 

Under the approved amendment, a state or a local government may provide a public announcement of grounds for implementing necessary forest projects on the website of the competent local government entity for at least 30 days, when it is impractical to obtain the owner’s consent and the forest project is urgently needed in view of the high accident risk related to landslides. 

If it is necessary to obtain the forest owner’s consent, his/her personal information may be used through a method of joint use of administrative information. If a forest project aims to prevent secondary damage from forest fires or landslides, and obtaining the owner’s consent through the above mentioned methods is impractical, the owner’s phone number may be furnished via a facilities-based telecommunications business operator as defined in Article 6 of the Telecommunications Business Act, to promote swift implementation of the project. 

<8> Amendments to the Act on Remedies for Injuries from Medical Malpractice and Mediation of Medical Disputes and the Act on Welfare Support for Children with Disabilities 

① Amendment to the Act on Remedies for Injuries from Medical Malpractice and Mediation of Medical Disputes 

The amendment deletes regulations on the ratio of financial resources-sharing for compensation for injuries caused by medical accidents incurred during childbirth regarding which the Committee for the Deliberation on Compensation for Medical Malpractice determines that such injuries were unavoidable (70 percent by the state and 30 percent by the operators of public health or medical institutions) and mandates that the state take full responsibility. 

② Amendment to the Act on Welfare Support for Children with Disabilities 

The amendment stipulates that state and local governments have a duty to pursue early detection of disabilities, and consider early intervention strategies, and local support centers for children with disabilities that are established and operated by local governments are mandated to provide caregivers with educational assistance for the early detection of disabilities. 

The head of a local government may, if necessary, provide infants more thorough checkups involving a follow-up test or an in-depth evaluation when the infant is suspected of having a disability after an early-detection screening test is performed. In such cases, state and local governments may provide financial support for thorough checkups, and then necessary support such as information about the prevention and treatment of disabilities may be offered in cooperation with related agencies for infants diagnosed with a disability or a possibility of having one in the future, following an exam.