The government will completely improve economic penalties that restrict corporate activities. It has set a specific target of improving 30% of the economic penalty regulations across all ministries. An urgent task is to push for legislative amendments in this year's regular National Assembly.
On the afternoon of the 1st, the government held the first meeting of the 'Economic Penalty Rationalization Task Force' (TF) at the Government Seoul Complex to discuss specific directions for its activities.
The Economic Penalty Rationalization Task Force will be co-chaired by Vice Minister of Economy and Finance Lee Hyung-il and Vice Minister of Justice Lee Jin-soo. Relevant ministries participating include the Fair Trade Commission, Ministry of Land, Infrastructure and Transport, Ministry of Oceans and Fisheries, Ministry of Environment, Ministry of Trade, Industry and Energy, Financial Services Commission, Ministry of Food and Drug Safety, Ministry of Employment and Labor, Ministry of Agriculture, Food and Rural Affairs, Ministry of the Interior and Safety, Ministry of Health and Welfare, Ministry of Science and ICT, and the Legislation Office.
The task force plans to gather opinions from economic organizations and business owners to establish improvement tasks by the end of the year, and will prioritize the tasks that need to be implemented urgently to submit them to the regular National Assembly in September. In particular, it will select key tasks for economic entities such as business owners, small business owners, small and medium-sized enterprises, and individuals. It will also analyze domestic and international best practices to develop improvement measures for the 'penalty surcharge imposition process' by ministry.
The government plans to revise the system to reduce criminal liability for business owners unless there is intent or gross negligence, or in minor cases. It will also discuss improvements to the crime of breach of trust. Penalty surcharge regulations that are excessively applied to the general public, such as small business owners and small and medium-sized enterprises, will be converted to penalty surcharges or fines.
Furthermore, it will strengthen financial liability, such as punitive penalty surcharges, rather than imposing penalties, and aims to restructure the system to provide substantial compensation to victims.
However, the policy is to respond immediately and resolutely to malicious unfair transactions such as stock price manipulation and serious crimes that pose threats to life and safety.
Vice Minister of Economy and Finance Lee Hyung-il said, 'We aim to improve 30% of the economic penalty regulations of all ministries within a year. However, this will not be a mechanical reduction; we will actively promote economic penalty improvement tasks that corporations and victims can feel on the ground.' He added, 'We will gather field opinions and prepare to announce the "Economic Penalty Rationalization Improvement Tasks" by the end of the year.'
Vice Minister of Justice Lee Jin-soo noted, 'When regulating corporate activities through "penalties," there is a concern that it may stifle the creativity, autonomy, and entrepreneurial spirit of business people and blur the original purpose of penalties. Regulation should be minimized and limited to necessary situations, and penalties should adhere to the basic principle of criminal law that they must be the last resort.'