Proposed Bill: Partial Amendment to the Act on Special Measures for Strengthening the Competitiveness of, and Protecting National High-tech Strategic Industries

Proposed by Rep. Lee Sang-sik (Democratic Party of Korea)

● The current Act designates key technologies and industries as national high-tech strategic technologies and promotes investment through specialized complexes with government subsidies. However, unlike countries like the US, China, and Taiwan, which fully subsidize industrial infrastructure, Korea provides only partial support.

The proposed amendment, therefore, mandates full or significant government support for industrial infrastructure expenses to ensure sustainable growth and requires the Minister of Trade, Industry, and Energy to report annually to the National Assembly on the master plan, technology leaks, and measures taken, enhancing oversight and protection of strategic technologies.

Proposed Bill: Partial Amendment to the Act on Special Measures to Strengthen Competitiveness and Stabilize the Supply Chain of Materials, Components, and Equipment Industry

Proposed by Rep. Lee Jae-kwan (Democratic Party of Korea)

● The special account for strengthening the competitiveness of materials, components, and equipment, established in 2019 and set to expire in 2024, was created to fund the master plan for these industries and related projects. Due to ongoing global supply chain disruptions and geopolitical tensions, Korea must develop robust strategies to ensure a stable supply chain and industry growth.

In response, the government announced a 500 billion won ($366 million), five-year investment in specialized complexes for technology independence. To ensure continued financial support, an Amendment proposes removing the account's sunset clause, thereby fostering strategic technology development and promoting supply chain stability and national economic growth.

Promulgated Bill: Framework Act on Supply Chain Stabilization Support for Economic Security

Competent Authority: Ministry of Economy and Finance

● This bill aims to prevent and respond effectively to supply chain risks from domestic and international factors, ensuring national security, maintaining economic activities, and contributing to national economic development. The Framework Act on Supply Chain will enable the government to activate cross-governmental response systems in emergencies and adapt to overseas supply chain restructuring through support for Korean companies.

Administrative Announcement: Partial Amendment to the Local Finance Act

Competent Authority: Ministry of the Interior and Safety

● The Ministry of the Interior and Safety has announced a Partial Amendment to the Local Finance Act to enhance the financial management of local governments. This Amendment mandates implementing a financial activity evaluation system, requiring local governments to assess and incorporate the outcomes into their financial management (Article 5). Additionally, it reinforces the procedures for introducing legal special accounts by requiring their establishment directly under the Local Finance Act, thereby limiting their creation through amendments to individual laws (Article 9).

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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.