Republic of Korea Government Policy Update — May 9, 2026

Major Policy & Legislative Changes

🏛️ National Assembly | Life Safety Basic Law Passed

On May 7, 2026, the National Assembly passed the Life Safety Basic Law, officially codifying into law the state and local governments' duty to guarantee safety and the rights of disaster victims—a first. After 12 years of debate over national disaster accountability following the Sewol ferry tragedy, this legislative change marks institutional progress. The law explicitly recognizes that "safety is a right."

🚢 National Assembly | Arctic Route Committee Bill Passed

On May 7, 2026, the National Assembly passed legislation establishing the Arctic Route Committee under the Prime Minister. Designed to build strategic policy and institutional foundations for the Arctic Route era, the law is expected to impact port and logistics sectors in Busan and related regions.

📜 National Assembly | Pro-Japanese Property Reversion Act Passed

On May 7, 2026, the National Assembly passed the Pro-Japanese Property Reversion Act, establishing legal grounds to reinstate the Pro-Japanese Anti-National Figures Property Investigation Committee. The law creates a new legal framework for recovering pro-Japanese assets.

🏦 Financial Services Commission | Low-Credit Borrower Credit Score System Review

The President directed the Financial Services Commission (FSC) to consider introducing regulatory guidelines to encourage banks to expand lending beyond high-credit borrowers to those with lower credit ratings. Citing concerns that the current system relies too heavily on financial institutions' goodwill, authorities are expected to explore alternative credit assessment systems that can supplement the traditional model based on borrowers' annual income and repayment history.

🖥️ Ministry of the Interior and Safety | Overseas Citizen Authentication Certificate Launch

The Ministry of the Interior and Safety announced a policy enabling overseas citizens to access domestic public websites via an Overseas Citizen Authentication Certificate without requiring a domestic mobile phone. The initiative was unveiled through a policy briefing on May 7, 2026.

Regulatory Improvements & Administrative Changes

📋 Financial Regulation | Alternative Credit Assessment System Under Review

The Financial Services Commission is expected to develop alternative credit assessment systems to supplement the widely-used model that primarily relies on annual income and repayment history. Expanding financial access for low-credit borrowers is the core objective.

🏗️ Industrial Safety Regulation | Continued Push for Stricter Major Accident Standards

Under the Lee Jae-myung administration's declared "war on workplace injuries," key initiatives include: ▲expanding inspection and supervisory coverage of worksites, ▲strengthening subcontracting obligations in construction and establishing new duties and responsibilities for construction clients, ▲mandating joint occupational health and safety committees between primary and subcontractors, ▲making risk assessments mandatory with new penalties, ▲strengthening administrative and economic sanctions including business shutdowns following major accidents.

🏢 Ministry of Economy and Finance | Advanced Strategic Industry Regulation Review

The Ministry of Economy and Finance announced it is pursuing "reviews of advanced strategic industry regulations, firm-size-specific regulations, and SME support systems to build an ecosystem where companies actively invest and sustain growth."

Policy Impact & Timeline Ahead

• The Life Safety Basic Law passage formally codifies the state and local governments' disaster safety obligations into law, expected to significantly expand disaster victims' rights remedies and broaden the scope of national responsibility for safety.

• With the Arctic Route Committee now established under the Prime Minister, the groundwork for formulating Arctic Route policies and institutional frameworks is expected to accelerate.

• Following the announcement of low-credit borrower credit score system reforms, financial authorities are anticipated to begin follow-up work on implementing alternative credit assessment systems.

• The National Growth Fund will be sold for a limited three-week period starting May 22, 2026, with details on tax benefits and investment limits already disclosed.