LAW & POLICY
Trends
Vehicle defect corrections delayed: plan updates every 3 months · Cartel self-reporting leniency cut, and 2 more | Administrative Briefing September 24
The Ministry of Land, Infrastructure and Transport has pre-announced an amendment to the Enforcement Rule of the Motor Vehicle Management Act: if a manufacturer does not begin corrective action within 3 months of disclosing a defect, it must update and report its plan every 3 months. The Korea Fair Trade Commission proposed cutting the leniency for the first cartel self-reporter after an investigation begins from full exemption to a 75% reduction. We also cover data showing school violence committee deliberations rose 87.9% in 5 years, and new deemed-permit procedures for island projects.
Unemployment Benefit Premium Rate Hike from 1.8% to 2.0% Pre-announced · Limits on Inviting Foreign Nationals, plus 2 More | Administrative Briefing, September 23
The Ministry of Employment and Labor has pre-announced a draft enforcement decree amendment raising the unemployment benefit insurance premium rate from 18/1000 to 20/1000. The Ministry of Justice has proposed restricting foreign-national invitations by employers punished for violating the Labor Standards Act, the Occupational Safety and Health Act and related laws. We also cover the final cancellation of GS E&C's business suspension over the Geomdan collapse, and the 5-day business suspension for price gouging from the first violation.
Adult PC Room Disposition Notices Cut to 6 Days · 112 Medical Tourism Agencies Get E-Visas + 2 More | Administrative Briefing, Sep 22
For illegal adult PC rooms, the time from a police crackdown to the advance notice of administrative disposition has dropped from an average of 42.2 days to 6.2 days. From October 1, the Ministry of Justice grants e-visa benefits to 112 designated medical tourism agencies. Draft amendments removing "youth rooms" from karaoke rules and expanding rewards for reporting local subsidy fraud are open for comment.
Labor supervisors will be renamed 'labor supervisors' with effect from October 8th. Obligation to distinguish wages when paying contract payments (January 2027)
Three laws under the Ministry of Employment and Labor, passed by the National Assembly in March, will be implemented in stages. Starting October 8th, the title of labor supervisor will change to labor inspector, and the authority to supervise workplaces with fewer than 30 employees can be delegated to local governments. The obligation for contractors to separately pay wage-related costs when paying contract amounts and to verify the subcontractor's wage payment will be applied from January 1, 2027.
Bankruptcy disqualification reasons are removed from 12 laws (effective October 8) – business licenses and registrations reopen.
Provisions that previously restricted business licenses or registrations solely based on a bankruptcy declaration and lack of rehabilitation have been comprehensively revised across 12 public health and welfare-related laws and will take effect on October 8th. The Debtor Rehabilitation Act already prohibited disadvantages based on bankruptcy, and this revision addresses remaining disqualifying clauses in individual laws. Requirements for rehabilitation and practical considerations for verification have been outlined.
Construction Payment Arrears: Suspension and Fines · Wage Arrears Clearance Ends Sept 23, and 2 More | Administrative Briefing, September 21
Gyeonggi Province is inspecting unpaid construction payments until Chuseok, with business suspension or fines for violations. The Ministry of Employment and Labor's intensive wage arrears clearance period ends September 23. New fines for taxi working-hour obligations and an amended Reserve Force Decree are both open for comment.