Korea Economic Association: "Rationalizing Economic Criminal Penalties Eases Concerns Over Excessive Punishment"

"Calls for Improvement of Unreasonable Regulations Hindering Corporate Activities"

The business community has welcomed the "Second Plan for Rationalizing Economic Criminal Penalties" announced by the government and the ruling party. They assessed that easing criminal penalties for minor violations or mistakes has alleviated corporate concerns.

Lee Sangho, Head of the Economic and Industrial Division at the Korea Economic Association, stated on the 30th, "This measure, which reflects voices from the field, increases the effectiveness of monetary sanctions for serious illegal acts, while violations of simple administrative obligations are converted into fines. It is positive in that it alleviates concerns about excessive criminal punishment."

Employees of tenant companies are moving at the Korea Economic Association in Yeouido, Seoul. Photo by Kang Jinhyung

Director Lee also said, "The business community agrees with the direction of institutional rationalization pursued by the government and the ruling party, and we will work to ensure that the improved laws are observed in the field. We also hope that the government will continue to improve unreasonable punitive regulations that hinder corporate activities and create an innovative management environment."

According to the Second Plan for Rationalizing Economic Criminal Penalties announced on this day, the focus is on reducing penalties to lessen the criminal liability burden on business operators and prevent the mass production of ex-convicts. Notably, the maximum ceiling for fines imposed when a headquarters unfairly interferes with franchise management will be increased from the current 5 billion won to 50 billion won, ten times higher. In cases of collusion, fines of up to 10 billion won will be imposed. If a mobile carrier fails to make efforts to prevent location information leaks, a fine of up to 2 billion won will be levied.