The government approved a bill Friday to revise the Trust Law to allow new types of trusts, marking the first major amendment to the law since it was enacted about 80 years ago.
The bill will allow liabilities to be placed in trust. It will also enable trustors to act as trustees. For instance, companies can put their assets in trust and manage the trust by themselves.
But the government plans to freeze allowing trustors to act as trustees for one year after the revisions go into effect, as ruling coalition lawmakers have expressed fears that the scheme may be abused by companies to conceal assets they have illegally amassed.
The government also endorsed a bill to revise the Trust Business Law, which covers businesses that engage in trust operations.
The revision will require companies that plan to act as trustors and trustees to obtain consent from the Financial Services Agency if they intend to sell beneficiary rights to a minimum of 50 investors. The measure will be also frozen for one year.