[Bills in Focus] Aligning retirement with pension eligibility, enhancing urban growth

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

Proposed by Rep. Kim Jae-sub (People Power Party)

● This amendment expands the Act's regulatory scope to cover distribution systems involving atypical securities, paving the way for innovative solutions in fractional investing, such as "investing in bits and pieces" or "fractional share trading." It establishes legal grounds for security tokens, creates an issuer's account management agency and introduces curb brokers. These measures are expected to facilitate the convenient and efficient issuance, distribution and management of securities in small quantities, amid rising interest in investing in tiny pieces.

Furthermore, the amendment enhances investor protection by requiring general investors to set investment limits based on their investment objectives, financial situation and experience when engaging in transactions on these platforms.

Proposed Bill: Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation

Proposed by Rep. Lee In-seon (People Power Party)

● This amendment offers tax incentives to companies that deliver shareholder returns surpassing 120 percent of the previous year's market average. Specifically, it allows these companies to deduct 5 percent of the excess return from their corporate tax for the relevant taxable year.

Pending Bill: Partial Amendment to the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion

Proposed by Rep. Park Hong-bae (Democratic Party of Korea)

● To bolster financial stability, the Korean government enacted a law in 1998 to gradually raise the pension age from 60 to 65, spanning from 2013 to 2033. This reform aimed to extend the retirement age and delay pension payments for seniors. Although the legal retirement age is set at 60, many individuals retire earlier. As the pension age is set to reach 65 by 2033, a gap is emerging between retirement and pension eligibility ages. This amendment seeks to align the retirement age with the pension age by 2033, effectively closing this gap.

Promulgated Bill: Insurance Business Act

Competent Authority: Financial Services Commission

● This bill mandates that insurance companies set up computer systems, allowing hospitals to automatically claim medical indemnity insurance proceeds without needing to visit offices or submit complex paperwork.

Administrative Announcement: Enforcement Decree of the Act on the Support for Urban Complex Development

Competent Authority: Ministry of Land, Infrastructure and Transport

● This bill provides exclusive benefits for private urban complex development projects, such as a shorter deliberation period and an increased floor area ratio, to boost city competitiveness and improve residential stability.

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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 queries about the bills, contact cr@draju.com