The business community voiced unified support for the "Second plan to rationalize economic criminal penalties (second plan)," which strengthens accountability for serious illegal acts by corporations while easing excessive criminal punishment.
The Korea Chamber of Commerce and Industry said on the 30th of the second plan, "We welcome that criminal punishment is being converted into monetary liability and that many of the issues the business community has continuously raised, such as the Monopoly Regulation and Fair Trade Act and the Fair Transactions in Subcontracting Act, have been included."
It added, "Going forward, we hope measures that are more keenly felt on the ground by corporations, rather than quantitative outcomes, will be more actively reflected, and that the government and the ruling party will push more boldly and swiftly than now to achieve the originally stated goal of improving 30% of criminal provisions within one year without setbacks."
That day, the government and the Democratic Party of Korea held a policy consultation and announced the second plan. For serious illegal acts by corporations, such as unfair transaction, monetary liability was strengthened by focusing on raising the penalty surcharge. Under the Distribution Industry Development Act, the Fair Transactions in Subcontracting Act, the Fair Franchise Transactions Act, and the Fair Agency Transactions Act, criminal punishment will be adjusted to apply only when corrective orders are not complied with, and the cap on fixed penalty surcharges will be raised to as much as 5 billion won.
By contrast, matters where there is no employer intent or that amount to simple administrative obligation violations will see criminal punishment converted to fines or imprisonment abolished, reducing criminal risk.
The Korea Enterprises Federation also said, "Through the second plan, we expect the criminal risk for employers over simple administrative obligation violations or minor mistakes to be somewhat eased," adding, "As it was announced that a total of 441 economic criminal penalties will be improved across the first and second plans, we ask that related rules be overhauled as quickly as possible so the business community can tangibly feel the effects."
The Federation of Korean Industries said, "The business community agrees with the government and the ruling party's direction to rationalize the system, and will work to ensure the improved statutes are followed on the ground," while the Korea International Trade Association also said, "We highly evaluate the government's commitment to reducing the burden on corporations," adding, "The trade industry agrees with this intent, and the trade association will strengthen practical training and guidance for the trade sector during implementation to establish a voluntary compliance system."