Apartment Management Fee Fraud: Criminal Penalties Up to Two Years
South Korea’s Ministry of Land, Infrastructure and Transport is amending the Multi-Unit Housing Management Act to introduce criminal penalties for management fee corruption. Under the revised rules, failure to maintain proper accounting records or falsifying them can result in up to two years in prison or a fine of up to KRW 20 million. Previously, only administrative fines applied. With approximately 14 million households living in apartment complexes nationwide, management fee transparency is a concern affecting millions of Korean families.
AI Basic Act Enforcement Decree: Draft Revision Pre-Notified
The Ministry of Science and ICT (MSIT) has pre-notified a draft amendment to the Enforcement Decree of the AI Basic Act to strengthen the legal foundation for AI industry development. The revision defines risk classification criteria for AI systems, establishes mandatory prior review requirements for high-risk AI applications, and provides a legal basis for establishing AI technology support centers. The AI Basic Act was enacted in 2024, and this decree revision is the next step in building Korea’s comprehensive AI regulatory framework, following a risk-based approach similar to the EU AI Act.
SME Credit-Vulnerable Fund: First-Come-First-Served Replaced by Needs Assessment
The Ministry of SMEs and Startups has announced it will change the allocation method for its credit-vulnerable small business support fund from a first-come-first-served basis to a needs-based assessment model. Under the new system, applicants will be evaluated on criteria including revenue decline rate, debt-to-asset ratio, and overall business crisis level. The change aims to ensure that public funds reach the most financially distressed small business owners—particularly those who lacked the information access or administrative capacity to apply quickly under the old system.
Sources
- Apartment management fee penalty strengthening (Korea.kr Policy News): Link
- AI Basic Act Enforcement Decree revision pre-notification (MSIT): Link
- SME credit-vulnerable fund needs-based transition (Ministry of SMEs): Link
Source: https://www.korea.kr/news/policyNewsView.do?newsId=148964832&call_from=rsslink