Proposed bill: Partial Amendment to the Act on Promotion of Information and Communications Network Utilization and Information Protection

Proposed by Rep. Hong Suk-joon (People Power Party)

● In response to increasing cybersecurity risks, there have been growing calls for the reinforcement of security functions in communication equipment. This amendment enables the Minister of Science and ICT to implement an information security certification system for major communication equipment prescribed under the Presidential Decree and requires certain institutions, including facility-based telecommunications business entities, to use communication equipment with information security certification.

Proposed bill: Partial Amendment to the Criminal Act

Proposed by Rep. Lim Byung-heon (People Power Party)

● A recent report by the Supreme Prosecutor’s Office in Korea revealed that the persistent issue of industrial technology divulgences may have been caused by lenient penalties. This amendment aims to reinforce the penalties related to industrial technology divulgence and increase the perceived seriousness of the crime by designating the act of divulgence or leakage of industrial technologies outside the country as espionage under the Criminal Act.

Pending bill: Framework Act on Supply Chain Stabilization Support for Economic Security

Proposed by Rep. Yoo Sung-kull (People Power Party)

● Major changes to the global economic structure have caused frequent disruptions in supply chains of key resources and raw materials, threatening our national security and the stable operation of the economy. Consequently, a greater emphasis has been placed on the government’s role in supporting the private sector to swiftly stabilize important supply chains and realize economic security through prompt financial and corporate support measures.

This amendment prepares a general finance and tax support system for demands related to the general economy that cannot be met by field-specific laws. It also newly establishes control towers, such as the Supply Chain Stabilization Committee, to implement a government-level response system, prevent supply chain risks, and effectively respond to supply chain disruptions.

Promulgated bill: Enforcement Decree to the Act on Special Measures for the Promotion of Venture Businesses

Competent Authority: Ministry of SMEs and Startups

● Following the amendment of the Act on Special Measures for Promotion of Venture Businesses, experts are now eligible to receive venture business stock options. Accordingly, this bill aims to prescribe matters delegated by the amended act and matters necessary for the enforcement thereof. It expands the scope of persons that may receive stock options from venture businesses to include persons with a minimum working experience of ten years in the relevant field, persons with a doctoral degree, or persons with a master’s degree and a minimum working experience of 5 years after acquiring the degree. It also allows external experts to exercise their stock options only when they have signed and executed a service agreement related to the granting of the stock options with the venture business. This bill also prohibits the largest stockholder and their specially related persons from receiving stock options.

Administrative announcement: Partial Amendment to the Enforcement Decree of the Fair Transactions in Franchise Business Act

Competent Authority: Fair Trade Commission

● The previous amendment reduced the penalty surcharges for franchisers who violate the Franchise Business Act to up to 50 percent based on their voluntary corrections in the primary reduction stage. To enhance the effectiveness of the previous amendment, this amendment raises the maximum rate of the secondary reduction of penalty surcharges from 50 percent to 70 percent. It also improves the convenience of prospective franchisees by expanding the ways that a franchiser can provide information disclosure statements.

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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.

For any queries about the bills, contact cr@draju.com.