The Legislation and Judiciary Committee of the National Assembly passed an amendment to the Financial Investment Services and Capital Markets Act on Dec. 9. The amendment is to better crack down on illegal short selling.Previously, illegal short selling was subject to a small amount of fine. Accordi
The Environment and Labor Committee of the National Assembly passed an amendment to the Trade Union and Labor Relations Adjustment Act for the ratification of ILO core conventions on Dec. 9.The amendment guarantees unemployed persons’ and laid-off workers’ union membership without guaranteeing emplo
The National Assembly passed an amendment to the Commercial Act along with the Financial Conglomerate Supervision Act on Dec. 9. With the new laws allowing for separate audit committee member election and multiple derivative action, the management rights of a large number of enterprises are at serio
Heads of business organizations in South Korea denounced the ruling Democratic Party on Dec. 8 for pushing for the passage of the three controversial bills on corporate regulations despite opposition from industry circles.The ruling party is seeking to amend three laws -- the Commercial Act, the Mon
The National Policy Committee of the National Assembly held a legislative subcommittee meeting and passed an amendment to the Financial Investment Services and Capital Markets Act on Dec. 2.According to the amendment, a fine can be imposed on illegal short selling and the fine cannot exceed the tota
The so-called “Netflix Act,” which holds content providers (CPs) responsible for Internet service quality, will be applied to companies with average daily users of one million or more beginning from Dec. 10. As a result, large domestic and foreign CPs such as Naver, Kakao, Google, and Netflix will h
The Financial Services Commission announced on Nov. 30 that it would run a task force to submit an Insurance Business Act amendment to the National Assembly in the first half of next year so that IFRS 17 can be implemented in 2023.Earlier, IFRS 17 was scheduled to be introduced in 2021 and then the
The author is an analyst of NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com. -- Ed. A third generation of leaders is at the forefront of management at LG Group, HMG, and Samsung Group. While three fair economy bills are likely to be passed at the 21st session of the National A
The authors are analysts of NH Investment & Securities. They can be reached at minjae.lee@nhqv.com and ys.jung@nhqv.com, respectively. -- Ed. The government is encouraging domestic companies to participate in RE100, a collaborative initiative of influential businesses committed to 100% renewable pow
The author is an analyst of NH Investment & Securities. He can be reached at midas.sohn@nhqv.com. -- Ed. The mobile payment market is expected to expand rapidly at a 10% or higher CAGR going forward, thanks to a hike in mobile billing limits and growing online shopping amid Covid-19. Backed by its a
The government and the ruling party are planning to revise the Commercial Act so that the exercise of voting rights by each major shareholder and affiliate person is limited to 3 percent of issued stocks during audit committee member appointment in a listed company. The Federation of Korean Industri
Samsung Group affiliates are expected to increase their dividend payments to a record-high level with regard to Samsung Electronics’ three-year plan to that end and the inheritance tax after the death of chairman Lee Kun-hee. The three-year plan is scheduled to be finalized this year. Samsung Electr
Democratic Party of Korea lawmaker Jeon Yong-gi tabled an amendment to the Local Tax Act on Nov. 8 in order to block speculative real estate transactions by foreigners. According to the amendment, house purchase by a non-resident foreigner is subject to a tax rate of 30 percent plus the current real
The Financial Services Commission announced on Nov. 2 an amendment to the enforcement decree of the Act on Reporting and Use of Certain Financial Transaction Information. The main purpose of the act is to impose the duty of money laundering prevention on virtual asset businesses.According to the ame
The author is an analyst of NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com. -- Ed. Having completely untangled its circular shareholding web in 2018, the Samsung Group is in compliance with governance structure laws. But, issues remain to be addressed. Currently, Samsung C&T,
Possible changes in the governance structure of Samsung Group are drawing much attention after the death of its chairman.Samsung Electronics vice chairman Lee Jae-yong needs at least some of the late chairman Lee Kun-hee’s shares in Samsung Electronics and Samsung Life Insurance in order to keep gov
Google’s in-app payment and 30 percent fee were covered at the parliamentary inspection of the Ministry of Science and ICT that took place on Oct. 7. National Assembly members urged the passage of a Telecommunications Business Act amendment against in-app payment.Democratic Party of Korea lawmaker H
Ruling Democratic Party of Korea leader Lee Nak-yon visited the Korea Employers Federation (KEF) for a meeting with entrepreneurs on Oct. 6. There, he said that he was hoping to block foreign hedge funds from targeting South Korean companies.“I want to clarify that the new Commercial, Fair Trade and
The Moon Jae-in administration defined conglomerates, which represent a very large portion of the South Korean economy, as deep-rooted evils and has put pressure on them with a variety of regulations. However, it suddenly came up with ‘Korea New Deal’ projects after COVID-19 drove them to a precipic
South Korean semiconductor material, component and equipment suppliers are objecting to the "discovery procedure" the South Korean government is planning to introduce for the purpose of patent right protection. According to them, foreign semiconductor companies, which are overwhelming in terms of th