Kim Byung-ki, the acting chairperson of the Democratic Party of Korea and floor leader, said on the 31st that he would accelerate legislation aimed at 'preventing the abuse of the crime of breach of trust'. As the ruling party pushes for the second amendment to the Commercial Act, which centers on the mandatory voting system and separate election of audit committee members, concerns from the business community have grown, prompting the presidential office to align with the ruling party by introducing the card of 'mitigating breach of trust'.
On the morning of that day, during a policy coordination meeting held at the National Assembly, Kim noted, "The president said that it is necessary to seek institutional measures regarding the abuse of the crime of breach of trust that is stifling corporate activities," adding, "We will promptly advance the rationalization of regulations such as preventing the abuse of the crime of breach of trust."
He stated, "The issue of the abuse of the crime of breach of trust is a major request from the business community regarding the amendment of the Commercial Act," adding, "The Democratic Party has been listening to the voices of the business community while pushing for the amendment of the Commercial Act and will discuss measures to prevent the abuse of the crime of breach of trust together."
He added, "In the future, the Democratic Party will closely consult with the government's economic penalty rationalization task force," stating, "We will prepare measures to rationalize regulations to support the creative activities of corporations, including preventing the abuse of the crime of breach of trust. If necessary, we will also swiftly push for legislation."
Earlier, President Lee Jae-myung chaired an emergency economic inspection task force meeting on the 30th, stating, "I will ensure that excessive economic penalties do not stifle corporate management activities," and added that the government would promote institutional improvements to prevent the abuse of the crime of breach of trust.
The ruling party also indicated that it would review additional legislation to reflect the business community's concerns that as the responsibilities of management broaden, the risk of frivolous lawsuits increases during the process of promoting the amendment to the Commercial Act. However, they only said, "We will discuss it in the regular National Assembly," without specifying a timeline, as President Lee's call to expedite related legislation was made.
Currently, both the ruling and opposition parties have proposed several amendments to the Commercial Act and the Criminal Act to enshrine the Supreme Court's 'business judgment rule' into law, which would state that if management makes decisions for the benefit of corporations and losses occur as a result, they cannot be punished for the crime of breach of trust.