New Corporate Vitality Act to Take Effect in July... Applies to DX, Carbon Neutrality, and Supply Chain Stability
On the 16th, the Ministry of Trade, Industry and Energy held a meeting with private members of the Business Restructuring Plan Deliberation Committee at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to review tasks for the smooth implementation of the new Corporate Vitality Act, which will be enforced in July.
The new Corporate Vitality Act converts the Corporate Vitality Act, which is set to expire in August, into a permanent law. It includes support measures such as tax benefits and administrative procedures to promote business restructuring amid rapidly changing industrial environments.
According to the Ministry of Trade, Industry and Energy, since the implementation of the Corporate Vitality Act, 473 companies have pursued business restructuring, resulting in approximately KRW 37.5 trillion in new investments and the creation of around 20,000 jobs.
At the meeting, the ministry explained government support policies under the new Corporate Vitality Act and listened to the opinions of private committee members.
Compared to the current law, the new Corporate Vitality Act supports business restructuring aimed at stabilizing supply chains and includes provisions to promote strengthening supply chain stability in connection with government strategies such as the 'Industrial Supply Chain 3050.' Additionally, the scope of special measures such as simplification of commercial law procedures and suspension of fair trade law regulations has been expanded to cover digital transformation (DX), carbon neutrality, and supply chain stability.
The ministry announced that it will focus on three core tasks following the enforcement of the new Corporate Vitality Act: supply of funds and orders, technology development and workforce training, and mobility regulation innovation.
Meanwhile, with the enforcement of the Future Automotive Parts Industry Act starting in July, business restructuring of automotive parts companies is also expected to be actively promoted.
At the meeting, private members urged agile responses from both companies and the government amid increasing domestic and international uncertainties such as financial risks in the recent changing economic order.
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Song Kyung-soon, chairperson of the Business Restructuring Deliberation Committee’s private members, stated, "Based on closer cooperation with the financial sector, the achievements of business restructuring should expand beyond individual companies to the entire industrial ecosystem." Kang Kyung-sung, 1st Vice Minister of the Ministry of Trade, Industry and Energy, said, "Our companies and industries are at a turning point of crisis and opportunity," adding, "We will concentrate our capabilities to ensure that proactive business restructuring supports the achievement of goals such as USD 700 billion in exports and KRW 110 trillion in investments."
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