National Assembly Judiciary Committee Passes Criminal Procedure Act Amendment for Comprehensive Prosecutor Investigation Reform

Background and Core of the Criminal Procedure Act Amendment to Comprehensively Restructure Prosecutorial Investigative Power

The revision to the Criminal Procedure Act, passed by the National Assembly Legislation and Judiciary Committee on the 29th, centers on a complete ban on the direct investigation by prosecutors. The bill effectively guarantees the police's independent investigation authority, moving to block at the source the prosecutors' existing rights to supplementary and direct investigations. The committee held a plenary session that day, passed the revision led by the ruling party, and immediately referred it to the Committee on Bill Adjustment. If the revision is finally passed, the long-held judicial community aspiration for the separation of investigation and prosecution will be institutionally realized in Korea's criminal justice process.

The core of this revision is granting the police the so-called 'exclusive investigative right,' meaning the agency in charge of an case is responsible for the investigation through to the end. Under the current system, even if the police initiate an investigation, prosecutors have exercised the authority to step in directly to continue or supplement the investigation. However, the opposition party and some in the legal community have criticized this system, arguing that it encourages the abuse of prosecutorial power and undermines the independence of investigations. A ruling party member of the Judiciary Committee explained that by specifying the previously abstract provisions on the dismissal of public prosecutions, they enhanced the completeness of police investigations. Conversely, former Justice Minister Han Dong-hoon has strongly objected, arguing that specific political intentions were inserted into the bill, expressing concerns that it could degenerate into a system where only a minority in power enjoy vested interests.

The scope of the revision covers all criminal cases, making it extremely comprehensive. The acquisition of investigative authority leads directly to changes in investigative personnel and budget allocation. The police now face the task of a comprehensive organizational overhaul to handle vast caseloads, while the prosecution must completely restructure its operations to focus solely on indictment and trial proceedings. The entire legal community is at a point where deep analysis is required regarding how this institutional change will alter the paradigm of judicial risk management for the entire nation.

Nuclear-Powered Submarine Special Bill: A Key Factor in National Security and Budget

The Ministry of National Defense completed the legislative announcement of a Special Bill this month governing the acquisition, operation, and safety management of nuclear-powered submarines (nuclear subs), aiming for enactment within the year. This law was prepared to provide legal backing for the introduction of nuclear subs, classified as a national strategic project. Since the nuclear submarine project involves a massive budget and sensitive diplomatic variables such as uranium enrichment, parliamentary approval procedures are essential.

If the special bill passes, it is expected to exponentially boost the competitiveness of domestic shipyards in winning defense industry contracts, going beyond the mere purchase of a submarine. Industry analysts predict that the budget, reaching trillions of won, will be injected directly into defense companies and subcontractors, contributing to the local economy and job creation. Since building and maintaining a nuclear sub requires advanced technology such as nuclear propulsion systems and precision noise detection equipment, it is likely to serve as a long-term boon for related defense stocks and the nuclear industry ecosystem. However, as the massive increase in defense spending could lead to a greater tax burden, thorough verification of budget feasibility at the National Assembly level is anticipated.

Impact of Political Risk on the Market and Legislative Outlook

The progression of special counsels for rebellion and the Yangpyeong Expressway is also acting as a factor elevating supply and policy risks. The special counsel team for rebellion (Special Prosecutor Jo Eun-seok) appealed the first-instance acquittal of former Justice Minister Park Sung-jae, who was referred to trial on charges of accepting a request to suppress investigations into First Lady Kim Kun-hee, but subsequently withdrew the appeal due to concerns over trial delays. This is interpreted as a strategic decision to shorten the duration of the legal battle while accelerating the trial on other key allegations. The second special counsel team, led by Kwak Chang-young, investigating allegations of route changes for the Yangpyeong Expressway, has decided to summon former Land Minister Won Hee-ryong again on the 6th. The heightened policy volatility during the expressway cancellation process is adding to uncertainty for construction firms and infrastructure investors.

The ruling party plans to convene the National Assembly plenary session starting the 30th to process key bills, including the Criminal Procedure Act revision, the 'Patents Shorts' law (a bill to ban strikes by media and broadcasting unions), and the special counsel for the National Election Commission. In response, the People Power Party has threatened a filibuster (unlimited debate), maintaining a tense standoff. As political conflict surrounding the judicial system intensifies, market participants are increasingly wary of policy uncertainty. Particularly, the reorganization of investigative agencies could impact corporate corruption crackdowns, suggesting that both the stock and real estate markets must brace for high volatility. The timing of the final passage of the nuclear sub special bill and the Criminal Procedure Act revision will be adjusted based on subsequent discussions in relevant committees such as the Legislative and Judiciary Committee and the National Defense Committee. Investors need to adopt strategies to re-evaluate the valuation of defense and infrastructure-related stocks, taking into account the time lag until the bills are definitively passed.