FedEx Federation "Expansion of Class Action System and Introduction of Punitive Damages, Cold Water on Economy" Backlash

[Asia Economy Reporter Ki-min Lee] The Ministry of Justice announced on the 23rd its plan to expand the class action system from the existing securities sector to all sectors and to introduce a punitive damages system, prompting strong concerns from the Federation of Korean Industries (FKI).

On the afternoon of the same day, the FKI stated, "The 'Class Action Bill' and 'Punitive Damages Bill' announced by the government today pour cold water on companies striving to overcome the crisis caused by COVID-19, and the business community cannot help but express serious concerns."

They continued, "Our companies are already suffering from criminal penalties, administrative sanctions, and civil lawsuits. If the class action and punitive damages systems are introduced on top of this, companies will find normal business operations difficult, and above all, small and medium-sized enterprises and mid-sized companies without the capacity to respond to lawsuits will suffer enormous damage."

They added, "The current policy priority should be improving unreasonable regulations, not hastily introducing systems that increase uncertainty in corporate management. Therefore, we request a careful review of the introduction of the class action system and punitive damages system."

This content was produced with the assistance of AI translation services.