Plenary Session to Push Through Commercial Act and K-Chips Act on the 27th
Final Arguments in Yoon's Impeachment Trial on the 25th
Lee's Sentencing Hearing Scheduled for the 26th
The National Assembly is expected to continue a final showdown over the passage of major bills such as the Commercial Act and the K-Chips Act in the last week of February.
Attention is focused on whether the so-called ‘K-Chips Act (partial amendment to the Restriction of Special Taxation Act),’ which centers on amendments to the Commercial Act and the expansion of tax credits for semiconductor companies, will be passed at the plenary session of the National Assembly on the 27th. Regarding the amendment to the Commercial Act, the first subcommittee of the Legislation and Judiciary Committee is discussing the ‘introduction of directors’ fiduciary duty to shareholders’ on the 24th. The core of the amendment is the inclusion of provisions to protect minority shareholders.
The Democratic Party is advocating for the addition of ‘shareholders’ alongside the existing ‘company’ in the fiduciary duty regulations to protect minority shareholders. On the other hand, the ruling party opposes this, arguing that it could lead to attempts to seize management rights and an increase in lawsuits against the board of directors. If negotiations fail amid disagreements between the ruling and opposition parties, the Democratic Party has announced plans to pass the bill solely with the opposition in the plenary session.
The K-Chips Act, which passed the National Assembly’s Strategy and Finance Committee on the 18th, is likely to be approved in the plenary session. The key point of this bill is to raise the integrated investment tax credit rate for semiconductor companies by 5 percentage points compared to the current rate. If the amendment passes the plenary session, the tax credit rate for facility investments by semiconductor companies will increase from 15% to 20% for large and medium-sized enterprises and from 25% to 30% for small and medium-sized enterprises.
It is also noteworthy whether the ‘Myeong Taegyun Special Prosecutor Act’ will be passed at this week’s plenary session. The opposition views this as a card to simultaneously pressure next presidential candidates of the People Power Party, including Kim Geon-hee, as President Yoon Seok-yeol’s impeachment trial approaches next month. Accordingly, the opposition plans to process the bill at the first subcommittee of the Legislation and Judiciary Committee on the 24th, then pass it through the full committee meeting on the 26th, and finally approve it in the plenary session. Separately, the ‘Kim Geon-hee Permanent Special Prosecutor Request’ is also reportedly being pushed for submission to the plenary session. However, the permanent special prosecutor cannot be activated unless Choi Sang-mok, the acting president and deputy prime minister for economy, appoints the special prosecutor.
Outside the National Assembly, the 11th hearing on President Yoon’s impeachment trial will be held on the 25th. The Constitutional Court, which is handling the impeachment trial, is expected to reach a final decision as early as mid-next month after hearing comprehensive arguments from both sides and final statements from the parties involved. Separately, the trial for President Yoon’s charges of leading a rebellion, currently underway at the Seoul Central District Court, held its first hearing on the 20th and has scheduled an additional preparatory hearing for arguments on the 24th of next month.
On the 26th, the sentencing hearing for Representative Lee’s election law violation charges will take place. Representative Lee will undergo additional written evidence examination along with sentencing witness questioning by both the prosecution and Lee’s side. Earlier, Lee was indicted on charges of making false statements that he did not know the late Kim Moon-gi, former head of Seongnam Urban Development Corporation, whom he met during his tenure as mayor of Seongnam, and of threatening the Ministry of Land, Infrastructure and Transport to have the development site in Baekhyeon-dong’s land use upgraded. On November 15 last year, in the first trial, he was sentenced to one year in prison with a two-year probation, a sentence that results in loss of his parliamentary seat. Considering that sentencing hearings are usually scheduled about a month after the sentencing hearing, the result of Lee’s appeal trial is expected as early as the end of March.
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