KITA: "Welcomes Rationalization of Economic Criminal Penalties, Will Ease Corporate Burden"

Government and Ruling Party Announce Second Plan:
Increasing Financial Penalties Instead of Criminal Punishment
"Reducing Legal Uncertainty for Companies and Fostering an Environment for Responsible Management"

The business community has welcomed the government's and ruling party's announcement of the 'Second Rationalization Plan for Economic Criminal Penalties.' The direction of the government-party consultation is to ease criminal punishment for minor violations or mistakes, while increasing financial penalties. The business sector expects that these changes will help reduce legal uncertainties for companies.

Jung Heecheol, Head of the Trade Promotion Headquarters at the Korea International Trade Association, stated on the 30th, "The trade industry welcomes the Second Rationalization Plan for Economic Criminal Penalties announced through today's government-party consultation," adding, "In particular, the measure to ease criminal risks for business owners is expected to reduce legal uncertainties for companies and help create an environment where responsible management is possible."

Seoul Gangnam-gu Korea International Trade Association building. Korea International Trade Association

According to the Second Rationalization Plan for Economic Criminal Penalties announced today, the focus is on reducing penalties to lessen the burden of criminal punishment on business operators and to prevent the mass production of ex-convicts. Notably, the maximum fine imposed when a headquarters unfairly intervenes in franchise management will increase from the current 5 billion won to 50 billion won, and up to 10 billion won in fines will be imposed in cases of collusion. If a mobile carrier fails to make efforts to prevent the leakage of location information, a fine of up to 2 billion won may be imposed.

Jung Heecheol commented, "This plan was prepared swiftly, just three months after the announcement of the first plan, and we highly appreciate the government's commitment to reducing the burden on companies. We agree with this intention and, during the implementation of the system, will strengthen practical education and guidance for the trade industry to establish a voluntary compliance system."

He also addressed future tasks, such as easing the crime of breach of trust. Jung added, "We hope that this will lead to effective legislation and that remaining issues, including improvements to the crime of breach of trust, will be supplemented by reflecting the opinions from the field."