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[Bills in Focus] Support for Saemangeum Project, platform monopoly regulations

By Korea Herald

Published : May 20, 2024 - 11:24

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Proposed Bill: Partial Amendment to the Special Act on Promotion and Support for Saemangeum Project

Proposed by Rep. Lee Won-taeg (Democratic Party of Korea)

● The Saemangeum Project, launched in 1989, is an ongoing national project designed to develop an economic hub for business and tourism. Unlike the Gadeokdo New Airport Construction Project, which has progressed swiftly due to being exempt from preliminary feasibility surveys, the Saemangeum Project has faced delays in business promotion because it does not qualify for such exemptions.

Therefore, this amendment exempts preliminary feasibility surveys when necessary for the reclamation or redevelopment of land or the installation of infrastructure for this project.

Proposed Bill: Partial Amendment to the Telecommunications Business Act

Proposed by Rep. Lee In-seon (People Power Party)

● The current Act prohibits app market business entities from compelling mobile content suppliers, etc., to use certain means of payment by unduly taking advantage of their position in the app market. However, some app market business entities that also provide operating systems have created an exclusive app ecosystem by restricting the installation and use of mobile content on smartphones or tablet computers through other app markets or routes. However, the current law lacks effective regulations to restrict such practices.

Therefore, this amendment aims to prevent business entities operating both app markets and operating systems from creating an exclusive app ecosystem. It prohibits restricting users from installing and using other app markets or installing mobile content through other app markets without just cause.

Pending Bill: Partial Amendment to the Depositor Protection Act

Proposed by Rep. Yun Chang-hyun (People Power Party)

● The deposit insurance system has played a crucial role as the last bastion of depositor protection during crises in financial markets, including the Asian financial crisis in 1997 and the savings bank crisis in 2011.

The current act establishes a maximum premium rate of 0.5 percent for all financial entities to prepare the Deposit Insurance Fund for potential financial insolvencies. An article in the appendices of the current Depositor Protection Act stipulates that the insurance premium rate limit will remain in effect until Aug. 31, 2024. It also prescribes that if a new rate limit is not established within this period, the limit from the 1998 Depositor Protection Act -- which is lower -- will apply.

Therefore, to maintain the stability of the Deposit Insurance Fund, this amendment proposes to extend the period to Dec. 31, 2027, which is when the repayment of past restructuring costs from events such as the Asian financial crisis and the savings bank crisis are expected to end.

Promulgated Bill: Enforcement Decree of the Act on the Safety Control of Hazardous Substances

Competent Authority: National Fire Agency

● This bill requires the Korea Fire Institute to oversee the completion inspection of factories, etc., that handle hazardous substances in volumes that are 1,000 times beyond a designated quantity. It also sets out ratings to determine the designated quantity of self-reactive substances with high explosion risks.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Petroleum and Alternative Fuel Business Act

Competent Authority: Ministry of Trade, Industry and Energy

● Following the amendment to the Petroleum and Alternative Fuel Business Act, this amendment specifies the scope of alternative fuel types, the reporting requirements for the usage history of eco-friendly refined raw materials, and the designation of organizations dedicated to alternative fuels. It also extends the support program for diversifying crude oil import regions.

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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.