Korean Tax Regulation Updates for 2024
The draft presidential decree regulations (Regulation(s)), released on January 23, 2024 following 2023 Tax Law Amendment announced, has been revised, finalized and published by the Ministry of Economy and Finance (MOEF) on February 29, 2024.
Amendment to Subcontracting Act (Maximum 5 Times Punitive Damages for Misappropriation of Technology)
The Korea Fair Trade Commission’s (KFTC) proposed amendment to the Fair Transactions in Subcontracting Act (Subcontracting Act) was approved by the National Assembly during its plenary session on February 1, 2024 and will take effect on August 28, 2024.
Punitive Damages May Now Be Awarded up to Five Times – Patent Act, Utility Model Act, and Unfair Competition Prevention and Trade Secret Protection Act –
On January 25, 2024, National Assembly passed an amendment bill that increases the limit of punitive damages compensation from treble to quintuple under the Patent Act and the Unfair Competition Prevention and Trade Secret Protection Act (the UCPA).
PIPC Announces Policy Direction for the Protection of Online Behavioral Data Used in Targeted Advertising
On January 31, 2024, the Personal Information Protection Commission (PIPC) announced ‘Policy Direction for the Protection of Online Behavioral Data Used in Targeted Advertising’ (Policy Direction).
Compliance Checklist for Small-sized Businesses Following Expansion of SAPA Regulations
SAPA Regulations to Apply against Small-sized Businesses Effective January 27, 2024, the Serious Accident Punishment Act (SAPA) entered into force against small-sized businesses (businesses with 5~49 regular employees) after a 2-year grace period.
MRFTA Amendments on Expansion of Merger Notification Exemptions and Introduction of Commitment Procedures for Merger Control
On January 25, 2024, the Korea Fair Trade Commission (KFTC) proposed amendments (Amendments) to the Monopoly Regulation and Fair Trade Act (MRFTA) were approved by the National Assembly of Korea.
Korea-Taiwan Double Taxation Avoidance Arrangement Comes into Force
The Implementation Act of the Arrangement between Korea and Taiwan for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income (the Korea-Taiwan Tax Arrangement) officially took effect on December 26, 2023, following endorsement by the National Assembly.
Enactment of the Carbon Dioxide Capture, Utilization and Storage Act (CCUS Act)
The “Carbon Dioxide Capture, Usage and Storage Act” (the “CCUS Act”) proposal has been passed at a plenary session of the National Assembly on January 9, 2024 and is scheduled to come into effect one year after its promulgation.
Strategic Considerations for Korean Investors: Leveraging the Special Tax Provision for Foreign Pass-Through Entities
It has been a year since the introduction of the special tax provision that enables taxpayers to treat foreign pass-through entities,
KFTC proposes ex-ante regulation of platforms under the “Platform Competition Promotion Act”
On December 19, 2023, the Korea Fair Trade Commission (“KFTC”) announced its proposal to enact the “Platform Competition Promotion Act” (“PCPA”) for ex-ante regulation of platforms by designating “dominant platform operators.”