President Lee Jae-myung said on the 30th, "I will ensure that excessive economic punishment does not stifle corporate management activities," and announced that a government-level "Economic Punishment Rationalization Task Force (TF)" will be initiated immediately. He specifically noted that the 'breach of trust' against corporate heads is being abused and stated, "It is time to seek institutional improvements regarding the point that it stifles corporate activities."
On the same day, President Lee chaired the third emergency economic inspection TF meeting at the presidential office and revealed this plan. He added, "We will establish a clear goal of a 30% overhaul within a year, starting with the regular National Assembly session."
The easing and abolition of the breach of trust are significant issues with considerable dissent even within the ruling Democratic Party of Korea. Some critics argue that it does not align with the intent of the proposed amendment to corporate law. In fact, when President Lee, who was the Democratic Party's presidential candidate last year, indicated that he would consider easing the breach of trust for corporations, there were considerable complaints within the party that it undermines the party's identity for electoral reasons.
During the meeting, President Lee stated, "There are cases where companies hesitate to invest domestically because they could end up in prison if something goes wrong in their business activities in Korea," and emphasized that "corporations need to shift towards a model centered on shareholders, consumers, and stakeholders, while also ensuring their autonomy as much as possible." He added, "Questions are being raised about whether imposing criminal sanctions in addition to economic and financial penalties for violating trust aligns with international standards."
◇"Establish a national fund of over 100 trillion won as soon as possible"
President Lee stated, "We will quickly prepare a plan to establish a national fund of over 100 trillion won in which citizens and corporations participate to invest in future strategic industries that will lead the next 20 years." He noted that he intends to create development plans by industry, including regulatory innovations, and stated, "We will ensure that future resources can be created in advanced industrial fields such as AI (artificial intelligence)." The core of the industrial ecosystem transition mentioned by President Lee is the "future industry centered on renewable energy" and the "AI-centered advanced industry."
◇Review 'differential support for regions facing population decline' in all policies
The meeting also addressed regional differential support policies for balanced regional development. President Lee stated, "We also allocated more funds for living recovery consumption coupons to local areas, and implemented a differentiated plan to provide additional support for regions experiencing population decline," and emphasized that "we must consider institutionalizing this in all national policies moving forward." He also remarked, "We need to uncover new growth opportunities and momentum," and stated, "I will work to alleviate polarization, which is Korea's most serious problem and the root of all issues."