Proposed Bill: Partial Amendment to the Labor Standards Act

Proposed by Rep. Ko Dong-jin (People Power Party)

● To enhance the competitiveness of Korea’s national high-tech strategic industries, this bill aims to exempt the R&D sector in industries such as semiconductors, displays, biotechnology and secondary batteries from the current weekly cap of 52 work hours.

Rep. Ko, a former CEO of Samsung Electronics, emphasized that flexibility in working hours is essential for boosting productivity in advanced industries. He pointed out in recent interviews that Europe's loss of competitiveness in the semiconductor field was partly due to reduced working hours, underscoring the need for a more adaptable labor framework to maintain Korea's global edge.

Proposed Bill: Partial Amendment to the Telecommunications Business Act

Proposed by Rep. Lee Jeong-heon (Democratic Party of Korea)

● In response to the significant burden large content providers place on domestic internet infrastructure, this bill aims to prevent these entities from leveraging their market positions to avoid network usage fees. The amendment, also known as the "Network Free Rider Prevention Act," mandates that major domestic and international value-added telecommunications companies must enter into network usage agreements with facilities-based telecommunications operators. Moreover, they are required to provide fair compensation for using their networks.

Rep. Lee highlighted that if large global content providers like Google continue to occupy domestic internet resources without appropriate compensation, it will discourage investment in domestic internet infrastructure and stifle the growth of local content providers. According to the Ministry of Science and ICT, Google accounts for 30.55 percent of daily domestic traffic, Netflix 6.94 percent, and Meta 5.06 percent.

Pending Bill: Partial Amendment to the Commercial Act

Proposed by Rep. Oh Gi-hyoung (Democratic Party of Korea) and Rep. Cha Gyu-geun (Rebuilding Korea Party)

●This bill seeks to tackle the issue of undervaluation in Korea’s stock market by reforming corporate governance structures. In particular, it proposes to increase the number of independently elected auditors in large listed companies and impose voting restrictions on significant agenda items for the largest shareholders and their affiliates.

Promulgated Bill: Quantum Science Technologies and Quantum Industry Promotion Act

Competent Authority: Ministry of Science and ICT

● This bill outlines the development of a comprehensive plan to promote quantum science technologies and the quantum industry. It includes establishing a quantum strategic committee, creating an R&D hub, fostering a quantum technology ecosystem, and advancing the commercialization of quantum technologies.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Special Act on Promotion and Support for the Saemangeum Project

Competent Authority: Ministry of Land, Infrastructure and Transport

● This amendment seeks to lower the barriers to foreign investment in the Saemangeum Project by adjusting the eligibility criteria for project executors. Instead of assessing the credit rating and capital strength of newly established domestic subsidiaries, the amendment will consider the credit rating and capital strength of the parent company, in this case a foreign investor. This change is designed to encourage more foreign investment.

Additionally, the amendment will increase the number of members on the building committee from 30 to 70 to include a broader range of expertise in areas such as urban planning, landscape and transportation.

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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 queries about the bills, contact cr@draju.com