[Bills in Focus] Windfall tax on banks and urban infra refurbishment

Proposed bill: Partial Amendment to the Act on the Protection of Financial Consumers

Proposed by Rep. Kim Sung-joo (Democratic Party of Korea)

● Persisting high prices and interest rates have benefited certain financial companies at the expense of financially vulnerable people and small-business operators. This amendment requires financial companies with a net interest margin exceeding 120 percent of their average net interest income over the past five years to pay up to 40 percent of the excess income as a “mutual finance contribution.”

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

Proposed by Rep. Kweon Seong-dong (People Power Party)

● Following the recent discovery of the illegal short selling of listed stocks by global investment banks, there have been calls to reinforce punishment for such acts to bolster shareholder protection. This bill sets the fines for illegal short selling to three times the profit accrued or loss avoided if the amount exceeds 5 billion won ($3.8 million) and twice the profit accrued or loss avoided if the amount is more than 500 million won but less than 5 billion won.

Pending bill: Special Act on Maintenance and Support for Decrepit Planned Cities

Proposed by Rep. Song Eon-seog (People Power Party)

● Over two decades have passed since the establishment of the First Phase New Towns and other planned cities, calling for a comprehensive improvement of the buildings and urban infrastructure. This bill facilitates the necessary funding and system to improve decrepit planned cities nationwide, including local innovation cities. It also relaxes regulations for safety examinations, changes in land use, and increases in floor area ratio for related improvement projects in special improvement areas to improve the functionality and settlement conditions of these cities and facilitate their transformation into future cities.

Promulgated bill: Act on Special Measures for the Promotion of Venture Businesses

Competent Authority: Ministry of SMEs and Startups

● If a founder of a venture company owns less than 30 percent of the issued voting shares after a large-scale investment inducement, this bill allows the founder to possess multiple voting rights with a maximum of 10 votes per share. However, to prevent the abuse of such shares, if the multiple voting shares were inherited or transferred, or the founder is no longer an executive, these shares shall be converted to common shares.

Administrative announcement: Partial Amendment to the Enforcement Decree of the Game Industry Promotion Act

Competent Authority: Ministry of Culture, Sports and Tourism

● This amendment prevents the omission or falsification of probability indicators in games with probabilistic items and requires the transparent disclosure of information, including the type and drop rate of probabilistic items, to be prominently featured within the game, as well as on home pages and in advertisements, to protect game users and cultivate a fair gaming environment.

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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