26-05-2025
Stock undervaluation prevention, bank branch closure notices
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.
Proposed Bill: Partial Amendment to the Inheritance Tax and Gift Tax Act
Proposed by Rep. Lee So-young (Democratic Party of Korea)
● This amendment aims to prevent controlling shareholders from inducing stock undervaluation to reduce inheritance or gift taxes during succession. If the assessed value of listed shares falls below 80 percent of their net asset value, the same valuation method used for unlisted shares will be applied, reflecting both assets and earnings.
Proposed Bill: Partial Amendment to the Telecommunications Business Act
Proposed by Rep. Choi Soo-jin (People Power Party)
● This amendment aims to curb Google's forced in-app payment policy by specifying prohibited acts of major app market operators and banning the imposition of unreasonable or discriminatory conditions on the use of external payment systems.
Pending Bill: Partial Amendment to the Banking Act
Proposed by Rep. Park Hong-bae (Democratic Party of Korea)
● As banks tend to facilitate the transition to digital services and close physical branches, this amendment seeks to protect digitally vulnerable individuals by requiring advance notice before any branch closure.
Promulgated Bill: Act on the Improvement of Urban Areas and Residential Environments
Competent Authority: Ministry of Land, Infrastructure and Transport
● This bill lowers the consent threshold for forming a reconstruction project association from at least 75 percent to 70 percent of all strata title holders in each unit of a housing complex.
Administrative Announcement: Partial Amendment to the Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-Based Financial Fraud and Refund for Loss
Competent Authority: Financial Services Commission
● This amendment requires specialized credit financial companies and credit service providers to verify users' identities during financial transactions, aiming to prevent telecommunications-based financial fraud.
