[Bills in Focus] Protecting small retailers, boosting recycling

Proposed Bill: Partial Amendment to the Income Tax Act

Proposed by Rep. Lim Kwang-hyun (Democratic Party of Korea)

● To prevent a contraction in the domestic stock market with the implementation of the financial investment income tax in 2025, this amendment proposes increasing the basic deduction for financial investment income tax from 50 million won ($37,200) to 100 million won.

Proposed Bill: Partial Amendment to the Distribution Industry Development Act

Proposed by Rep. Oh Sae-hee (Democratic Party of Korea)

● This amendment reinforces regulations on hypermarkets to promote their mutual development alongside small and medium-sized distribution businesses by mandating the designation of compulsory closure dates for hypermarkets on holidays and imposing business hour restrictions.

Pending Bill: Partial Amendment to the Act on the Improvement of Urban Areas and Residential Environments

Proposed by Rep. Kim Sang-hoon (People Power Party)

● To ensure the stable and prompt implementation of urban redevelopment projects, this amendment streamlines the safety inspection system, allows communities to establish redevelopment promotion committees before they are designated as redevelopment zones, and improves regulations related to the processes for financing such projects.

Promulgated Bill: Microfinance Support Act

Competent Authority: Financial Services Commission

● This bill temporarily increases the common contribution rates financial companies must make to the Korea Inclusive Finance Agency to 0.035 percent for banks and 0.045 percent for insurance, mutual finance, specialized credit finance companies, and savings banks, until the end of next year.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles

Competent Authority: Ministry of Environment

● Following advancements in recycling technology, most electrical and electronic equipment can now be recycled. Therefore, this amendment shifts the policy focus from the safe disposal of electronic devices to a mandatory recycling system.

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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