Pending Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act

Proposed by Yun Chang-hyun (People Power Party)

● Under the Financial Investment Services and Capital Markets Act, only regulations concerning issuance apply to investment contract securities due to their atypical characteristics and limited distribution potential. However, unlike before, online transaction platforms have made it easier for investors to trade investment contract securities. Therefore, this Amendment seeks to uniformly apply the security distribution system outlined in the Act to all types of securities.

Additionally, while the distribution of securities currently is centered around stock transactions on listing markets, numerous foreign off-board markets operate the trading of various types of securities. Hence, it is necessary to regulate investment limits to protect ordinary investors while allowing multilateral off-board trading via investment brokers to facilitate the establishment of distribution markets for trading beneficiary certificates of trusts and investment contract securities.

Furthermore, in February 2023, the government drafted and announced the Plan to Enhance Regulatory Systems Concerning the Issuance and Distribution of Security Tokens. Therefore, this bill also aims to formalize the concept of security tokens, which refers to digitalized securities that utilize distributed ledger technologies, within the existing framework of the Act on Electronic Registration of Stocks and Bonds and the Financial Investment Services and Capital Markets Act.

Promulgated Bill: Enforcement Decree of the Act on Employment Security Support Following Industrial Transformation

Competent Ministry: Ministry of Employment and Labor

● In the light of the enactment of the Act on Employment Security Support Following Industrial Transformation (Act No. 19760, Promulgated on October 24, 2023, Enforced on April 25, 2024), which introduces master plans for implementing employment security support following industrial transformation, this bill requires the government to assess and investigate the impact that industrial transition has on employment every five years. It also proposes implementing training programs for developing vocational skills and providing reemployment support for employers and workers.

Administrative Announcement: Enactment Bill to the Enforcement Decree of the Framework Act on Supply Chain Stabilization Support for Economic Security

Competent Ministry: Ministry of Economy and Finance

● The Framework Act on Supply Chain Stabilization Support for Economic Security (December 26, 2023, Act No. 19828) was enacted to establish a governmental response system that supports the private sector in stabilizing the supply chain, thereby preventing supply chain risks that arise or are likely to arise from various domestic or international factors and effectively responding to supply chain disturbances.

This bill establishes an early-warning system to monitor domestic and international supply and demand trends, price fluctuations, production volume changes of materials and raw materials, policy shifts by foreign governments and corporations, etc., to prevent potential disturbances to the supply chain. This bill, therefore, aims to determine matters delegated by the Act or necessary for its enforcement.

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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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