Second Meeting of the "Task Force on Rationalization of Economic Penalties (TF)"
Lee Hyungil: "Redesigning the System in Line with Global Standards"
The government is accelerating its work on rationalizing economic penalties, which aims to revise excessive criminal penalties that discourage corporate activity. It reaffirmed its policy direction of easing excessive economic criminal sanctions while strengthening monetary sanctions instead.
On the afternoon of the 4th, the government held the second meeting of the "Task Force on Rationalization of Economic Penalties" (TF), chaired by First Vice Minister of Finance and Economy Lee Hyungil. At the meeting, it encouraged the legislation of previously announced tasks and began to identify additional areas for improvement. This meeting was a follow-up measure to the President's remarks in a luncheon with ruling and opposition party leaders in January, where he emphasized the need to improve excessive economic penalties.
Vice Minister Lee asked each ministry to make every effort to support the legislative process, including providing explanations to the National Assembly, so that the bills related to the first set of tasks currently under discussion in the National Assembly can be passed quickly and applied in the field without delay. He also requested that the submission procedures for bills related to the second set of economic penalty rationalization tasks, announced at the end of last year, be expedited as much as possible so that the public and businesses can tangibly feel the changes.
Lee Hyungil, Deputy Minister of Finance and Economy, presides over the second meeting of the Task Force for Rationalizing Economic Penalties held on the 4th at the Government Complex Seoul in Jongno-gu, Seoul. Ministry of Finance and Economy.
The meeting also discussed the policy direction for promoting the rationalization of economic penalties from the third phase onward. The government plans to actively gather difficulties that companies and ordinary citizens face on the ground and to identify highly tangible tasks. It also decided to take into account changes in economic conditions, such as the inflation rate, and shifts in the times when overhauling the system.
The government confirmed its principle of reform whereby excessive criminal penalties, compared to the severity of the violation, will be eased or converted into administrative fines. At the same time, to ensure that the deterrent effect against legal violations is not weakened, monetary sanctions will be strengthened, including raising surcharge levels and introducing punitive damages. It also decided that changes in economic conditions, such as inflation, will be considered together when adjusting the system.
The participating ministries agreed that it is not enough to simply increase the number of tasks, and that there is a need for a qualitative leap in improving economic penalties. The Ministry of Justice requested bold improvements to unnecessary penalty provisions that unintentionally burden small and medium-sized enterprises and small business owners, reflecting voices from the field, and stated that it would support ensuring that the ideas proposed are translated into sophisticated legislation that can operate effectively in practice.
After review by the relevant ministries, the government plans to finalize and announce the "Third Plan for Rationalization of Economic Penalties" within the first quarter. Vice Minister Lee said, "Rationalizing economic penalties is an essential task for restoring the dynamism of our economy," adding, "This is not merely about easing punishments, but about redesigning the system in line with global standards, and we will continue to deliver results as a key driving force of regulatory innovation."
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