KCCI Proposes 9 Economic Legislative Tasks... "Ask the 20th National Assembly to Have a Sense of Duty in the 'Final Stage'"

KCCI Submits "Economic Legislative Tasks for the Last National Assembly of the 20s" Report to the National Assembly on the 11th
Appeal for Legislation to Overcome COVID-19... 7 Tasks Including Abolition of Public Certification System, Expansion of Remote Medical Care, Revival of Temporary Investment Tax Credit
Urges Passage of "Non-Controversial Bills"... 2 Tasks Including Relaxation of Capital Requirements for Insurance Industry, Principle Approval of Recycling Item Targets

[Asia Economy Reporter Ki-min Lee] The Korea Chamber of Commerce and Industry (KCCI) has requested that nine economic legislative tasks related to overcoming the novel coronavirus infection (COVID-19) be processed before the expiration of the 20th National Assembly's term. Currently pending bills will be automatically discarded when the 20th National Assembly's term ends at the end of this month.

On the 11th, KCCI announced that it delivered a report containing economic legislative tasks desired for the final session of the 20th National Assembly to the newly appointed floor leaders and relevant standing committees. This report selected and included nine particularly important and urgent tasks and 11 bills aimed at overcoming COVID-19.

KCCI proposed seven tasks (nine bills) across three areas: the 'Korean New Deal policy,' 'investment activation,' and 'support for marginalized and affected sectors' to overcome COVID-19. Additionally, they requested the processing of two tasks that could pass easily if discussed, as there are no disagreements between the ruling and opposition parties.

KCCI first urged the passage of economic bills related to the Korean New Deal policy. The Korean New Deal policy, introduced by the government to turn the COVID-19 crisis into an opportunity, focuses on building digital infrastructure and fostering non-face-to-face industries. KCCI stated, “The digital economy requires fast and convenient authentication and transactions, but Korea’s public certification system holds a monopoly, blocking new authentication technologies and electronic signatures, hindering new businesses.” They called for the passage of the 'Electronic Signature Act Amendment' to abolish the public certification system and promote various electronic signatures.

They also urged the enactment of the 'Medical Service Act Amendment,' which would allow limited telemedicine between doctors and patients. The limited allowance of telemedicine has been an important legislative task since the 17th National Assembly. Telemedicine is already in use in competing countries such as the United States and Japan, and KCCI argued that in Korea, the efficiency and convenience of telephone consultations and prescriptions have been proven due to COVID-19.

KCCI further emphasized the need to revive corporate investment sentiment to overcome the COVID-19 crisis, requesting bold and unprecedented expansion of tax support for facility investment and research and development (R&D). As part of this, they demanded the enactment of the 'Restriction of Special Taxation Act Amendment,' which would reinstate the temporary investment tax credit system used during past economic downturns, providing a 10% tax credit on investment amounts for all companies over three years (2020?2022). KCCI pointed out, “The R&D tax credit rate has nearly halved over the past decade, ranking among the lowest compared to major countries,” and stressed the need to raise it at least to the level during the global financial crisis amid the COVID-19 crisis. Professor Seong-hoon Cho of Yonsei University’s Department of Economics said, “The temporary investment tax credit can be expected to generate greater production and employment effects than the decrease in tax revenue. Once the economy normalizes after overcoming COVID-19, corporate tax revenue will increase, recovering the tax revenue lost due to the temporary investment tax credit.”

KCCI also urged the passage of bills supporting marginalized and affected sectors during the current COVID-19 situation. First, to promote voluntary donations, they pointed out that “while the United States and China allow full income deduction for individual donations, Korea only provides a 15?30% tax credit, which is disadvantageous to donors in both deduction method and rate,” and requested an amendment to the Income Tax Act to change the deduction method from tax credit to income deduction and to increase the deduction rate. They also requested the passage of the 'Act on the Improvement of Employment of Domestic Workers,' which would certify by the state when corporations directly employ domestic workers and apply labor-related laws such as the four major social insurances.

Furthermore, KCCI requested the passage of the 'Road Act Amendment,' which regulates the permit system for commercial road occupancy, to support tourism and regional economic revitalization. Countries like the United States and France have clear standards for outdoor terrace operations using roads, including pedestrian width and occupancy fees.

KCCI pointed out the need to revitalize industries through institutional improvements such as the uncontroversial amendment to the Insurance Business Act and the principle allowance of recyclable items. Compared to major countries, Korea’s capital requirements related to the financial industry are excessively high, acting as barriers to entry for new industries like fintech (finance + technology). Therefore, KCCI emphasized the need to legislate the Insurance Business Act amendment to lower the minimum capital requirement for insurance businesses from 30 billion won to 300 million won. Regarding the revitalization of the recycling industry, KCCI stated, “When recycling products and parts at the disposal stage, Korea’s government designates 65 quality certification items, but the United States and the EU have no such designation system,” and requested the passage of the 'Act on the Promotion of Transition to Environmentally Friendly Industrial Structures Amendment,' which changes the system to a negative list allowing all quality certification items in principle.

Kim Hyun-soo, head of KCCI’s Corporate Policy Team, said, “If major bills are discarded due to the expiration of the term this time, it will be difficult to predict when COVID-19 related bills and livelihood issues will be resolved, as the 21st National Assembly will have to reorganize and reintroduce the bills.” He added, “As the 20th National Assembly approaches its end, I hope they will fulfill their mission and process important bills within May to achieve a successful conclusion.”

This content was produced with the assistance of AI translation services.