The Democratic Party of Korea launched a task force (TF) on 'economic criminal liability rationalization' on the 26th. The TF will focus on discussing the overall legal system related to economic crimes, including easing the charges for breach of trust and the introduction of punitive damages.

On February 17th, Kwon Chil-seung, Chairperson of the Democratic Party of Korea's Special Committee on Small and Medium Enterprises, speaks at the policy gathering and launch ceremony of the Democratic Party's Special Committee on Small and Medium Enterprises held at the National Assembly in Yeouido, Seoul. /News1

Huh Young, the Democratic Party's chief deputy floor leader, met with reporters after a meeting of the floor strategy committee that day and noted, 'We will discuss various legislative tasks in response to the economic and management community's concerns regarding breach of trust and their demands for regulatory improvements.'

The TF will fundamentally revise the criminal responsibility provisions, including breach of trust, abuse of authority, obstruction of business, and dissemination of false information, while also intensively reviewing measures to strengthen civil liability such as punitive damages, class actions, and a Korean-style discovery process.

So far, there has been little consensus within the Democratic Party regarding easing breach of trust charges. There is already a Supreme Court precedent stating that 'management decisions cannot be punished,' leading to a perception that the need for legal reform is low.

However, the leadership recently established a policy to actively resolve the issue of 'easing breach of trust charges.' This can also be interpreted as a strategy to encourage increased investment from the U.S. while alleviating backlash against the enforcement of amendments to Articles 2 and 3 of the Labor Union Act and the second commercial law amendment, which have faced opposition from the business community.

The TF is headed by Representative Kwon Chil-seung, who served as the Minister of Small and Medium Enterprises and Startups during the Moon Jae-in administration. Representative Kwon is considered an experienced individual who has worked across large companies, labor unions, and the presidential office. Huh and Representatives Kim Nam-kun, Oh Gi-hyung, and Choi Gi-sang will also join the TF.

The Democratic Party plans to hold a meeting with the business community soon to gather on-site opinions.

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