Sangui Urges Passage of Killer Regulation Reform and Other Bills in the Final 21st Regular National Assembly Session

Submitted to the National Assembly on the 2nd: 'Legislative Issue Discussion Report'
Includes 12 Urgent Legislation and 3 Cautious Legislation Tasks

The Korea Chamber of Commerce and Industry (KCCI) urged on the 2nd for the 21st National Assembly's last regular session to address key legislative issues such as the reform of killer regulations and the introduction of a direct tax credit refund system for investment in advanced industries.

On the same day, KCCI announced that it had submitted the "KCCI Report" containing opinions on major legislative issues to the National Assembly. The KCCI Report is a proposal prepared to strengthen communication and recommendations to the National Assembly and has been delivered annually since 2016.

The report includes opinions on 12 urgent legislative tasks and 3 discussion tasks that are expected to have negative impacts on companies.

President Yoon Suk-yeol speaking at the Killer Regulation Reform Regulatory Innovation Strategy Meeting held on August 24 at the G-Valley Industry Museum in the Guro Digital Industrial Complex, Seoul.
[Photo by Presidential Office]

The 12 major issues are ▲reforming killer regulations (Chemical Substances Control Act, Environmental Impact Assessment Act, Foreign Employment Act, Industrial Accident Compensation Insurance Act, etc.) ▲strengthening local-centered industrial ecosystems (Local Investment Promotion Act), ▲introduction of direct tax credit refund for investment in national strategic technologies (Restriction on Special Tax Investigation Act), ▲improvement of the same-person designation system (Fair Trade Act), ▲rationalization of regulations on large discount stores (Distribution Industry Development Act), among others.

Additionally, for three tasks expected to have significant impacts on corporate management?namely the Yellow Envelope Act, mandatory ESG disclosure, and mandatory supply chain due diligence?KCCI recommended cautious legislation.

The proposal includes a call for the introduction of a direct tax credit refund (Direct Pay) system that refunds tax credits to promote investment in advanced industry sectors. Currently, companies investing in national strategic technologies can receive tax credits. However, since the corporate tax credit method is used, companies in the early stages of investment or those experiencing deteriorated profitability without generating profits cannot benefit from the tax incentives, reducing the effectiveness of support.

Major countries such as the United States, Canada, and the European Union (EU) competitively provide subsidies in cash or strengthen cash-like support to foster and protect advanced industry sectors. KCCI emphasized that through the introduction of the direct tax credit refund system, investment should be promoted and a virtuous cycle structure created by reinvesting secured resources into technology, personnel, and facilities.

Furthermore, KCCI requested the prompt enactment of the amendment to the Serious Accidents Punishment Act to postpone its enforcement by two years for workplaces with fewer than 50 employees, and the amendment to the National Assembly Act to introduce a regulatory impact analysis system to improve legislative quality.

Kang Seok-gu, head of the KCCI Research Headquarters, said, "There is not much time left in the 21st National Assembly's last regular session," adding, "Given the overall challenging economic situation, including the continued low-growth trend in the export-dependent Korean economy, we ask for the National Assembly's active legislative support to revitalize corporate vitality and regional economies."

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