Proposed Bill: Partial Amendment to the Motor Vehicle Management Act

Proposed by Rep. Lee Hun-seung (People Power Party)

● Recently, nine people have lost their lives in front of Seoul City Hall due to an acceleration accident with an unclear cause. The driver attributed the incident to a sudden unintended acceleration, but there are no definitive means to support this claim or to prove driver error.

In the Fair Trade Commission’s Status Research Report on the Operation of the Product Liability Act of May 2024, the Commission highlighted the need to amend the Motor Vehicle Management Act to introduce measures that clearly specify the manufacturers’ duty to implement technical measures, given the limitations of addressing acceleration accidents solely based on the Product Liability Act. Mandating the installation of a camera that records pedal activity will help determine the cause of an accident. If the recorded video shows that the vehicle did not stop after the driver stepped on the brake, it can prove there was a problem with the vehicle. It can also show whether the accident was caused by the driver, such as if the driver confused the accelerator pedal with the brake pedal.

Therefore, this bill proposes an amendment to the Motor Vehicle Management Act to mandate the installation of a camera that records pedal activity to clearly demonstrate the cause of car accidents.

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

Proposed by Rep. Kim Tae-nyeon (Democratic Party of Korea)

● This amendment expands the tax credits for semiconductor companies to include investment in research and development facilities and raises the overall tax credit rates by 10 percent. It also extends the sunset clause for the tax credits until Dec. 31, 2034.

Promulgated Bill: Act on Corporate Governance of Financial Companies

Competent Authority: Financial Services Commission

● This bill requires companies to install an internal control committee under the board of directors to formulate and implement basic policies and strategies for internal control. It also mandates financial companies to establish a responsibility matrix for internal control and submit it to the Financial Services Commission.

Administrative Announcement: Partial Amendment to the Enforcement Decree of the Electronic Financial Transactions Act

Competent Authority: Financial Services Commission

● This amendment unifies the level of administrative fines for all violations of the duty to report incidents, including the failure to report simple electronic financial incidents and the failure to report infringement incidents.

---

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.

---

For any queries about the bills, contact cr@draju.com.