Bills in Focus: Removing Elevated Railways, Deferring Taxation on Inherited Shares
Proposed bill: Special Act on the Transition of Elevated Metro Lines Including Line 1 of Seoul to Underground Lines
Proposed by Rep. Lee In-young (Democratic Party of Korea)
Elevated railways, such as Seoul Subway Line 1, have long been a subject of controversy due to noise pollution and safety concerns. In an effort to address these issues, Rep. Lee In-young of the Democratic Party of Korea has proposed a special act that aims to transform elevated railways into underground lines. The bill intends to establish a dedicated organization that will provide subsidies, loans, and other incentives to projects focused on converting these elevated metro lines. By doing so, the government hopes to alleviate the problems associated with the current elevated railway system and create a safer and more efficient underground network.
Proposed bill: Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation
Proposed by Rep. Choe Jae-hyeong (People Power Party)
The high tax rates imposed on inherited shares in Korea have been heavily criticized for discouraging business heirs from actively contributing to and promoting their inherited businesses. This has also led to the outflow of corporate assets to foreign countries. In an attempt to support domestic business heirs and encourage them to sustain their inherited businesses, Rep. Choe Jae-hyeong of the People Power Party has proposed a partial amendment to the existing Act on Restriction on Special Cases Concerning Taxation. This amendment seeks to defer taxation on inherited shares until the time of disposal, rather than at the time of inheritance. By deferring the tax burden, the government aims to provide heirs with more financial flexibility to manage and grow their businesses, thereby preventing the loss of corporate assets and promoting domestic business development.
Pending bill: Partial Amendment to the Act on Corporate Governance of Financial Companies
Proposed by Rep. Yoon Han-hong (People Power Party)
Recent financial accidents in Korea have raised concerns regarding the internal control systems within financial companies. In response, Rep. Yoon Han-hong of the People Power Party has put forward a pending bill that aims to strengthen the role of the board of directors in monitoring internal control. The proposed amendment assigns each executive specific management responsibilities related to internal control, promoting the sound operation of internal control systems within financial companies. By emphasizing accountability and ensuring the proper functioning of internal control, the government seeks to enhance the stability and reliability of the financial sector.
Promulgated bill: Intelligent Robots Development and Distribution Promotion Act
Competent Authority: Ministry of Trade, Industry and Energy
The Ministry of Trade, Industry, and Energy has promulgated the Intelligent Robots Development and Distribution Promotion Act, which is set to regulate the operation of robots on sidewalks. This bill introduces an operational safety certification system to ensure the safe use of robots in public spaces. Certified robots will be granted pedestrian status, implying that they can coexist with pedestrians and other sidewalk users without causing harm or disruption. The act also mandates the purchase of insurance by robot operators to compensate for any potential damage to people or property resulting from robot operation. Through the implementation of this bill, the government aims to promote the development and responsible use of intelligent robots in various sectors, including delivery services and assistance to the elderly or disabled.
Administrative announcement: Partial Amendment to the Examination Standards for Corporate Consolidation
Competent Authority: Fair Trade Commission
The Fair Trade Commission has made an administrative announcement regarding a partial amendment to the examination standards for corporate consolidation. The amendment seeks to update and improve the corporate consolidation examination process by considering the characteristics of the contemporary digital economy. In particular, for online platform business companies involved in corporate consolidation, the amendment stresses the need to carefully evaluate potential restrictions on competition arising from network effects, tie-in sales, and bundle sales. By adapting the examination standards to the digital economy, the government aims to ensure fair competition and prevent monopolistic practices within the corporate sector.
In conclusion, these bills and amendments reflect the ongoing efforts of legislators in South Korea to address various issues ranging from noise pollution and safety concerns of elevated railways to taxation on inherited shares and the regulation of intelligent robots. By introducing these legislative measures, the government aims to create a more sustainable, innovative, and equitable society.
