29 Asian Legal Business | January-February 2025 ment,” he says. Meanwhile, the mobility sector faces new regulations on emissions and driving assistance systems, creating opportunities in green finance, adds Ogasawara. (SW) Singapore Singapore is gearing up for a slew of regulatory changes in 2025, with reforms spanning workplace fairness, digital infrastructure, and financial security, even as the city-state strengthens its enforcement stance amid increasing regulatory scrutiny. The most important regulatory focus area for Singapore in 2025, according to Lauren Tang, managing partner at Virtus Law, Stephenson Harwood’s Singapore alliance firm, will be in the technology and AI sectors, “given the increased reliance of businesses on technology and technology’s ability to severely disrupt businesses.” Consequently, the digital sector stands at the forefront of regulatory attention, with the anticipated Digital Infrastructure Act set to reshape cybersecurity standards in 2025. This legislation aligns with Singapore’s Smart Nation 2.0 initiative and its target to triple the AI workforce from 5,000 to 15,000 practitioners within the next three to five years. “We expect this trend to reflect similarly in the legal industry, such that we will see more AI focused lawyers,” notes Tang. Singapore is also taking a leading role in AI governance, building upon its AI Governance Framework that came out in 2024. Key focus areas include ensuring AI systems are explainable, transparent, and fair, while promoting innovation and protecting consumers. The financial sector faces heightened oversight following a consistent upward trend in regulatory fines. From a modest $748,693 in 2021, penalties have risen significantly, reaching $3,281,066 in 2024 - marking a 22 percent increase from 2023. The focus has been particularly sharp on AML/KYC breaches ($1.84 million) and Transaction Monitoring violations ($1.43 million) in 2024. This enhanced enforcement approach aligns with the implementation of the Anti-Money Laundering and Other Matters Act, following Singapore’s largest-ever money laundering case involving assets of nearly $3 billion. The National AML Strategy, launched in October 2024, further strengthens this regulatory framework. “We expect that the remaining provisions of the Anti-Money Laundering and Other Matters Act to come into force in 2025 and beyond,” Tang observes. On the employment front, the Workplace Fairness Bill, passed in January 2025, introduces comprehensive protections against discrimination across various protected characteristics. “It is intended that a subsequent bill will be introduced to provide for the procedural rights and processes for individuals to make private claims under the Workplace Fairness Bill,” Tang says. (ND) South Korea South Korea stands at the crossroads of major regulatory transformation in 2025, signifying a fundamental shift in how Korea approaches technological innovation, digital assets, and market competition. On AI regulations, the implementation of the Framework Act on Artificial Intelligence introduces comprehensive regulations for AI operators, with penalties up to KRW 30 million ($20,766) for noncompliance with the obligation to notify AI violation of a corrective order, or failure to appoint a domestic agent. “The main provisions of the AI Act are largely divided into two parts: (1) the establishment of a national support system for the promotion of AI technology and related industries, and (2) the imposition of specific obligations on AI operators (particularly those involved in ‘high-impact AI’ and ‘generative AI’),” explains Joonki Yi, managing partner at Bae, Kim & Lee. Also, further liberalisation is expected in Korea’s virtual asset landscape. “The Financial Services Commission’s 2025 business plan includes gradually opening the virtual asset market to corporations, which is considered to be a significant change that can bring about quantitative and qualitative growth in the Korean virtual asset market,” Yi notes. This change could transform the market’s scale and sophistication, aligning with global regulatory trends in the U.S. and Europe. Furthermore, the Korea Fair Trade Commission’s 2025 Operational Plans signal intensified regulatory oversight, particularly in platform economics. Yi highlights upcoming legislation targeting “anticompetitive practices by platform giants across six service sectors,” including search engines, SNS, and advertising. Additionally, amid rising global protectionism, Korea anticipates an increase in trade remedy cases, especially with the return of the Trump administration policies. “Governments worldwide, including Korea, are likely to leverage protectionist tools such as antidumping duties, countervailing measures, and safeguards,” Yi adds. Looking ahead, Yi identifies AI, virtual assets, and supply chain-driven M&A as key growth sectors. “The combination of domestic restructuring needs and international trade tensions will create both challenges and opportunities,” he concludes. (SW) 2025 Outlook
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