[Bills in Focus] Broader offshore financial support, mobility regulatory sandbox

Proposed bill: Partial Amendment to the Fair Transactions in Franchise Business Act

Proposed by Rep. Yu Eui-dong (People Power Party)

● Under the current act, franchisers can designate goods or services vital for trademark protection as “essential items” and require their franchisees to trade these items with particular trading partners. However, a growing number of disputes have arisen between franchisers and franchisees due to excessive designation of essential items and price hikes. In response to this issue, this amendment mandates franchise agreements to specify matters regarding essential items and their pricing methods.

Proposed bill: Partial Amendment to the Export-Import Bank of Korea Act

Proposed by Rep. Kim Byung-wook (Democratic Party of Korea)

● As overseas contracts in industries like batteries, semiconductors, aerospace, defense and construction have increased, so has the need for financial support policies for exporting companies. To ensure broader access to this support, the amendment incorporates provisions regarding exceptions to the limitation, which were previously prescribed under the enforcement decree, into the act and specifies the qualifications for exceptions to the credit offering limitation.

Pending bill: Partial Amendment to the Corporate Restructuring Promotion Act

Proposed by Rep. Yun Chang-hyun (People Power Party)

● The sudden surge in interest rates and raw material prices has led to a significant rise in bankruptcy petitions. Considering the growing public consensus that a business workout is effective in helping companies with signs of insolvency, this amendment extends the Corporate Restructuring Promotion Act to remain effective until 2027, enabling the quick identification of early signs of insolvency and the prompt normalization of companies according to the autonomous deliberation of their creditors.

Promulgated bill: Act on the Promotion and Support of Mobility Innovation

Competent Authority: Ministry of Land, Infrastructure and Transport

● To encourage the adoption and broad utilization of innovative mobility methods, infrastructure, services and technologies, this bill introduces a mobility regulatory sandbox to facilitate the demonstration of self-driving cars, drones and demand-responsive bus services, among others, for a maximum of four years.

Administrative announcement: Partial Amendment to the Enforcement Decree of the Industrial Accident Compensation Insurance Act

Competent Authority: Ministry of Employment

● The trade union federation’s monopolization of delegation rights for members of the Industrial Accident Compensation Insurance and Prevention Deliberation Committee and the expert committee has caused the continual reappointment of the same members. To enable the participation of diverse experts and reflect diverse opinions in policymaking, this amendment expands the scope of eligible candidates to include members recommended by worker organizations.

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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