Business Community Welcomes Rationalization of Economic Criminal Penalties... Expects Reduced Criminal Risk (Comprehensive)

Ruling Party and Government Announce Plan to Rationalize Economic Criminal Penalties on December 30

The business community collectively welcomed the "2nd Plan for Rationalizing Economic Criminal Penalties" announced by the government and the ruling party on December 30.

Major economic organizations, including the Korea Employers Federation, the Federation of Korean Industries, the Korea Chamber of Commerce and Industry, and the Korea International Trade Association, assessed that this plan is expected to ease excessive economic criminal penalties, reduce criminal risks for business owners, and lower legal uncertainty for corporate activities.

The economic groups viewed positively the conversion of minor violations or simple administrative duty violations from criminal punishment to fines and administrative penalties. They also emphasized that the effectiveness of the system has been enhanced by strengthening monetary sanctions for serious illegal acts. Furthermore, they called on the government and the ruling party to swiftly enact legislation and revise regulations so that the announced improvements can be felt in practice, and requested even bolder and faster additional reforms.

First, the Korea Employers Federation evaluated the announcement positively, stating, "We expect that the criminal risk for business owners may be somewhat alleviated." The federation further assessed that this plan reflects the efforts to incorporate the opinions of the business community in order to improve excessive economic criminal penalties that have hindered corporate activities.

They added, "Since it has been announced that a total of 441 economic criminal penalties will be improved in the first and second rounds, we request that the relevant regulations be revised as quickly as possible so that the business community can tangibly experience the effects."

Kwon Chilseung, Head of the Economic Criminal Civil Liability Task Force, is delivering opening remarks at the "2nd Party-Government Consultation on Rationalizing Economic Criminal Civil Liability" held at the Democratic Party Floor Leader's Office in Yeouido, Seoul on the 30th. 2025.12.30 Photo by Kang Jinhyung

The Korea Chamber of Commerce and Industry demanded even bolder and faster legislative improvements. Kang Sungkoo, Head of the Research Division at the Korea Chamber of Commerce and Industry, emphasized, "We hope that measures with high practical impact for businesses will be actively reflected, and in order to achieve the government and ruling party’s goal of improving 30% of criminal provisions within one year, the process must proceed more boldly and rapidly than before."

The Federation of Korean Industries also assessed that the plan alleviated anxiety for companies by easing criminal punishment for minor violations or mistakes. Lee Sangho, Head of the Economic and Industrial Division at the Federation of Korean Industries, said, "This measure, prepared by reflecting voices from the field, enhances effectiveness by imposing monetary sanctions for serious illegal acts, while simple administrative duty violations are converted to fines. It is positive in that it alleviates concerns over excessive criminal punishment."

He added, "The business community agrees with the government and ruling party’s direction for rationalizing the system and will strive to ensure that the improved laws are observed in the field. We also hope the government will continue to improve unreasonable punitive regulations that hinder business activities, thereby creating an innovative management environment."

The Korea International Trade Association also expressed expectations that these changes will help reduce legal uncertainty for companies. Jung Heechul, Head of the Trade Promotion Division at the Korea International Trade Association, stated, "Measures to ease criminal risks for business owners are expected to reduce legal uncertainty for companies and contribute to creating an environment where responsible management is possible."

He added, "We hope that effective legislation will follow, and that remaining issues such as the improvement of the breach of trust offense will also be supplemented by reflecting opinions from the field."

According to the 2nd Plan for Rationalizing Economic Criminal Penalties announced on this day, the focus is on reducing penalties to lessen the criminal burden on business operators and prevent the excessive creation of ex-convicts. Instead, administrative fines have been significantly strengthened. For example, the upper limit for fines imposed when a head office unfairly interferes with franchise management will increase to 5 billion won, ten times the current limit of 500 million won, and fines for collusion will be up to 10 billion won. If a mobile carrier fails to make efforts to prevent the leakage of location information, a fine of up to 2 billion won can be imposed.