Introduction of Directors’ Duty to Protect Shareholders’ Interests and Other Changes to Regulatory Framework on Corporate Governance
The National Assembly passed the first amendment to the Korean Commercial Code (the “KCC”), expanding the fiduciary duties of directors to include the protection of shareholders’ interests (the “First KCC Amendment”) on July 3, 2025.
Key Antitrust and Competition Policy Directions of New Administration
On June 4, 2025, President Lee Jae-Myung commenced his five-year term as the 21st President of the Republic of Korea. During his inaugural speech, President Lee emphasized his commitment to building a market economy ecosystem based on fairness and shared prosperity.
“Yellow Envelope Act” Passes National Assembly Plenary Session
On August 24, 2025, the National Assembly passed the amendment to the Trade Union and Labor Relations Adjustment Act (the “TULRAA”), commonly known as the “Yellow Envelope Act.”
Status of Responsibilities Map Pilot Program for Financial Investment Companies and Insurers
The financial regulators recently provided a preliminary consultation on the responsibilities map to 53 large financial investment companies and insurers (each with at least KRW 5 trillion in total assets or at least KRW 20 trillion in assets under management), following earlier consultations with 18 financial holding companies and banks, and announced the major deficiencies …
Amendment to E-Commerce Act Strengthening Regulations on Dark Patterns Took Effect
On February 14, 2025, an amendment to the Act on the Consumer Protection in Electronic Commerce (the “E-Commerce Act”), which strengthens regulations on dark patterns, went into effect, along with related amendments to the Enforcement Decree and Enforcement Rules of the E-Commerce Act (the “Enforcement Regulations”). In particular, the amended Enforcement Regulations (i) specify obligations …
Expected Changes to Corporate Governance Policies and Regulations Following Presidential Election
On June 4, 2025, Lee Jae-myung was inaugurated as the 21st President of the Republic of Korea. The new administration announced several pledges and policy statements during its presidential campaign, and on July 3, 2025, the National Assembly passed the proposed amendments to the Korean Commercial Code (the “KCC”), which provide for (i) a broadened …
MOEL Issues Revised Labor-Management Guidance on Ordinary Wage in Response to Supreme Court’s En Banc Decisions
On February 6, 2025, the Ministry of Employment and Labor (the “MOEL”) released an updated labor-management guidance on ordinary wage (the “Guidance”) in response to the recent Supreme Court en banc decisions overruling its previous position on ordinary wage. The Guidance aims to clarify the newly established legal principle on ordinary wage and mitigate potential disputes and …
Prospects for Key Trade Policy Direction of Trump 2.0
With Donald Trump’s victory in the US presidential election held on November 5, 2024, the second Trump administration will begin on January 20, 2025. The Republican Party also won the Senate and House Majority, achieving the so-called “Trifecta.” As a result, Trump 2.0 is expected to be able to push forward strong policies for the …
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Legislative Insights: Recent Developments in Corporate Governance Regulations to Enhance Shareholder-Oriented Corporate Governance
Recently, in the context of corporations restructuring their business and governance structures, active legislative discussions regarding changes to related laws and regulations are taking place. These include (i) discussions in relation to the reintroduction of the mandatory tender offer rule, and (ii) amendments to the Korean Commercial Code (the “KCC”) to encompass shareholders within the …
Strengthening of Foreign Investment Security Review System
The amendments to the Enforcement Decree of the Foreign Investment Promotion Act proposed by the Ministry of Trade, Industry and Energy (the “MOTIE”) on December 20, 2023,