Enhancing shareholder returns, redefining worker, employer
Proposed by Rep. Cha Gyu-geun (Rebuilding Korea Party)
● This bill seeks to enhance shareholder returns by requiring companies to cancel treasury shares within six months of acquisition and prohibiting the allocation of new shares to treasury stock in the event of an equity spinoff.
Proposed Bill: Partial Amendment to the Commercial Act
Proposed by Rep. Kim Tae-nyeon (Democratic Party of Korea)
● This bill would repeal the provision on special misappropriation, which substantially overlaps with the offense of occupational breach of trust, in order to prevent the abusive application of breach of trust charges.
Pending Bill: Partial Amendment to the Trade Union and Labor Relations Adjustment Act
Proposed by Rep. Lee Yong-woo (Democratic Party of Korea), Rep. Shin Chang-sik (Rebuilding Korea Party), and Rep. Jung Hye-kyung (Progressive Party)
● This bill would expand restrictions on corporate damage claims against unions and redefine 'worker' to include union organizers and members, while broadening the scope of 'employer' to include a person having de facto control over the working conditions of workers.
Administrative Announcement: Partial Amendment to the Enforcement Decree of the Act on the Protection of Financial Consumers
Competent Authority: Financial Services Commission
● The draft amendment would require financial companies to assess customers' loss-bearing capacity by considering factors including their investment objectives, assets, experience with investment products, understanding of financial instruments, risk tolerance, and age, when selling high-risk financial products such as equity linked securities. It would also require financial companies to provide a clear explanation of key information, including the risk of loss, prior to the sale of such products.
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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