Kim Byunggi Meets Business Leaders: "Overuse of Breach of Trust Law Has Hindered Corporate Activities"

Kim Byunggi and Business Leaders Discuss Easing Corporate Concerns
Calls for Rationalizing Economic Criminal Penalties and Supplementary Measures for the Yellow Envelope Law and Commercial Act

Kim Byunggi, the floor leader of the Democratic Party of Korea, met with business leaders and stated, "We aim to address excessive economic criminal penalties, such as the crime of breach of trust, as a starting point to ease corporate concerns and create a stable business environment."

Kim Byunggi, floor leader of the Democratic Party of Korea, is speaking at a meeting with representatives of six economic organizations at the National Assembly on the 3rd. On the left is Sohn Kyungshik, chairman of the Korea Employers Federation. September 3, 2025 Photo by Kim Hyunmin

At a meeting held at the National Assembly in Yeouido on September 3 with representatives of six major economic organizations, Kim said, "It is true that since the era of military dictatorship, the crime of breach of trust has been overused, resulting in excessive criminal liability and shrinking business activities," explaining his position.

He continued, "If civil and criminal liabilities for companies are rationalized and balanced, businesses will be guaranteed the freedom to operate, while the public will be protected fairly, leading to a sustainable market order."

He added, "Yesterday, we officially launched the task force on rationalizing economic criminal penalties," and emphasized, "This demonstrates the Democratic Party and President Lee Jaemyung's strong determination to build a country that is business-friendly and grows with justice."

Speaking on behalf of the six economic organizations, Sohn Kyungshik, chairman of the Korea Employers Federation, said, "I hope today's meeting will allow for candid discussions on measures to revitalize the economy so that companies can make bold investments."

Chairman Sohn expressed concerns about the Yellow Envelope Law (Articles 2 and 3 of the Trade Union Act) and the amendment to the Commercial Act, both recently approved at a Cabinet meeting. He said, "The business community has repeatedly presented its opinions and alternatives due to concerns about side effects, but we regret that these were passed without sufficient supplementary measures," and stressed, "While we understand the intentions of the government and the ruling party, we ask for more careful follow-up measures to minimize any negative consequences."

He also mentioned the need to improve the system regarding the crime of breach of trust. Chairman Sohn stated, "In the past 10 years, indictments for breach of trust in Korea have been 31 times higher than in Japan," adding, "The overly broad application of this crime is evidence that it is causing difficulties for Korean companies."

Chairman Sohn suggested, "It is necessary to reduce the scope of regulations and to clearly stipulate the principle of fair judgment, such as not punishing directors who have fulfilled their duty of care based on sufficient information or have gone through discussions in statutory bodies."

In conclusion, Chairman Sohn said, "It appears that important issues such as extending the retirement age will continue to be discussed in the National Assembly. This is not simply a matter of labor-management relations, but one that significantly impacts the entire national economy, so we hope that the opinions of the business community will be fully reflected."

Meanwhile, in addition to Chairman Sohn, the meeting was attended by Lee Inho, Vice Chairman of the Korea International Trade Association; Oh Kiwoong, Vice Chairman of the Korea Federation of SMEs; Lee Hojun, Vice Chairman of the Korea Federation of Middle Market Enterprises; and Kang Seokgu, Executive Director of the Korea Chamber of Commerce and Industry.