YOON&YANG

The recent amendments to the Act on Testimony and Appraisal Before the National Assembly, expected to take into effective in March 2025 (subject to change depending on official promulgation), strengthen corporate obligations for parliamentary testimony and introduce significant penalties for non-compliance. This alert outlines key changes and compliance recommendations for businesses operating in Korea.

1. Major Legislative Changes 

2. Corporate Compliance Action Items 

3. How We Can Help

1. Major Legislative Changes 

1) Enhanced Attendance Requirements 

• Mandatory attendance for CEOs and executives at National Assembly proceedings 
• Remote participation options available for those unable to attend in person 
• Physical absence due to illness or travel no longer exempts from participation 

2) Data Submission Requirements 

• Mandatory compliance with data submission requests
• Personal information, sensitive information or trade secrets must be submitted without exception when requested
• Enhanced penalties for non-compliance, such as refusal to submit, submission of false information or document destruction 

3) Penalty Framework 

• False information/document destruction: Up to 5 years imprisonment or KRW 50 million fine
• Obstruction of testimony/data submission: Up to 3 years imprisonment or KRW 10-30 million fine

4) Expected Implementation Schedule 

• March 2025: Core provisions effective (attendance and data submission requirements) 
• June 2025: Remote attendance system implementation for plenary sessions

2. Corporate Compliance Action Items 

1) Risk Management 

• Implement system for tracking and managing National Assembly requests 

• Review and update internal compliance procedures 
• Establish clear response protocols 

2) Data Protection 

• Strengthen information security measures 
• Implement protocols for handling sensitive data requests 
• Review trade secret protection mechanisms 

3) Organizational Preparation 

• Conduct executive and employee training programs 
• Develop government relations strategy 
• Establish clear communication channels 

4) Legal Compliance 

• Engage legal counsel for interpretation and guidance 
• Document compliance procedures 
• Maintain records of all National Assembly interactions

3. How We Can Help

1) Review current compliance systems against new requirements 

2) Develop response protocols for information requests 

3) Train relevant personnel on new procedures 

4) Establish documentation systems for all interactions 

5) Maintain regular legal counsel consultation