[Bills in Focus] Tax relief for birth benefits, green light for local logistics facilities

(123rf)

Proposed Bill: Partial Amendment to the Telecommunications Business Act

Proposed by Rep. Yoon Doo-hyun (People Power Party)

● To ensure consumers are protected after the abolition of the Mobile Device Distribution Improvement Act, this amendment transfers provisions related to selective contract discounts and prohibitions on compulsory subscriptions to add-on services to the Telecommunications Business Act. It also promotes free competition among mobile communications businesses and enhances user convenience.

It came as the government decided to scrap a 10-year-old ban on handset subsidies last month. The Mobile Device Distribution Improvement Act came into effect in October 2014 to keep fierce competition to woo customers with hefty subsidies in check, but critics said it only helped local telecom giants reduce their marketing costs.

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

Proposed by Rep. Park Dae-chul (People Power Party)

● As Korea’s birth rate continues to fall, this amendment increases the limit of nontaxable childbirth grants provided by a company to employees and their spouses to 300 million won ($226,000) per child and offers companies a deduction of 50 percent of the amount of childbirth grants from the company’s income tax or corporate tax.

Pending Bill: Partial Amendment to the Export-Import Bank of Korea Act

Proposed by Rep. Han Byung-do (Democratic Party of Korea)

● With rising volumes of outbound investments as well as import and export volumes, there has been a growing emphasis on the role of the Export-Import Bank of Korea in implementing financial support measures for companies. Therefore, this amendment increases the legal capital of the Export-Import Bank of Korea from 15 trillion won to 25 trillion won.

Promulgated Bill: Act on the Development and Management of Logistics Facilities

Competent Authority: Ministry of Land, Infrastructure and Transport

● This bill expands the definition of logistics warehouse storage facilities to include order and delivery facilities designed to store cargo for anticipated orders. It also allows order and delivery facilities to be set up in Class 2 neighborhood living facilities.

Class 2 neighborhood living facilities are primarily intended to complement the residential environment and enhance the convenience of living in residential areas, including reading rooms, gyms, gathering places and playgrounds. This bill adds logistics storage facilities to the list of permitted uses.

The Ministry of Land, Infrastructure, and Transport had pushed for the bill to be promulgated as e-commerce has grown since the COVID-19 pandemic started, and consumer demand for fast delivery services such as early morning and same-day delivery has increased.

Administrative Announcement: Whole Amendment to the Technology Transfer and Commercialization Promotion Act

Competent Authority: Ministry of Trade, Industry and Energy

● This amendment alleviates the obligation for public research institutions to establish an organization dedicated to technology transfer and commercialization. It establishes grounds for public research institutes to receive compensation for supporting technology commercialization, enabling them to not only transfer technologies to companies but also provide comprehensive support throughout the entire commercialization process.

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

By Korea Herald(khnews@heraldcorp.com)