Economic Punishment Mitigation Proposed... Conflicting Public Opinion on Economy vs Punishment

Ministry of Economy and Finance & Ministry of Justice TF First Meeting
Government: "Fines for Minor Crimes"
Federation of Korean Industries Also Calls for "Excessive Punishment Reform"
Public Opinion: "Reality of Unequal Justice"
Criticism of Backsliding on Corporate Crime Punishment

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Public opinion is divided over the government's move to ease economic criminal penalties. There are stark differences in views not only among related government departments but also within the business community and legal circles.

On the 13th, the Ministry of Economy and Finance and the Ministry of Justice formed an inter-ministerial Economic Criminal Penalty Improvement Task Force (TF) and held its first meeting. Starting from mid-month, the TF plans to conduct a comprehensive review and examination of economic criminal penalty regulations under each ministry's jurisdiction, then prepare improvement plans and begin working-level meetings next month. Once key tasks and improvement plans are finalized at this meeting, subsequent meetings will be held regularly to sequentially address the issues.

Criticism of "Justice for the rich, injustice for the poor" becoming reality... Consensus is key

The government holds the position that some provisions imposing criminal sanctions such as imprisonment and fines for simple violations by businesspeople are excessive and should be converted to administrative penalties like fines. They also propose mitigating punishments for preparatory and conspiracy acts before offenses occur, and reducing penalties for injuries rather than deaths, thus differentiating punishments. They are also considering regulations allowing fines instead of imprisonment for minor crimes. Previously, the Federation of Korean Industries (FKI) released a survey in November last year showing that among 301 economic laws, there are 6,568 criminal penalty items, arguing that "excessive punishments that turn managers and companies into criminals must be improved to revitalize the economy." The FKI analyzed that out of the 6,568 penalty items, 2,376 (36.2%) allow two or more penalties (including administrative sanctions), with triple penalties at 10.9% (714 items), quadruple at 0.6% (41 items), and quintuple at 0.9% (60 items). The government also sympathizes with the FKI's claims.

However, public opinion differs. There is criticism that "justice for the rich, injustice for the poor is becoming a reality." In legal circles, some say, "We cannot particularly agree with the government's causal explanation that easing penalties will revive the economy, and there are also concerns about the fairness of criminal penalties, which should be applied equally to everyone." A lawyer in Seocho-dong said, "Even if the policy's intent and purpose are good, issues regarding criminal penalties for businesspeople are difficult to push forward without public consensus. How much consensus can be secured going forward is crucial."

Has the will to punish corporate crimes changed? Criticism of contradictory actions

There are also criticisms that easing economic criminal penalties contradicts the government's initial stance. The Yoon Suk-yeol administration showed its determination to punish corporate crimes that disrupt the free market economic order by reviving the Financial Securities Crime Joint Investigation Unit in the prosecution and appointing Lee Bok-hyun, a former prosecutor, as the new Financial Supervisory Service chief. The Fair Economy 3 Laws (amendments to the Commercial Act and the Fair Trade Act, and the enactment of the Financial Group Supervision Act), laws related to the International Labour Organization (ILO), and the Serious Accident Punishment Act may also be reconsidered from the perspective of businesspeople. Legal circles agree that "the TF and the Ministry of Justice carry a heavy burden." If the administrative sanctions proposed as alternatives to easing economic criminal penalties are deemed inappropriate, it could backfire. The Ministry of Justice is responsible for reviewing the improvement plans and the legal grounds for sanctions within the TF, effectively holding the 'key' to the final decision. Legal experts suggest that "one option could be to have companies share responsibility for violations committed by businesspeople." Alternatively, sanctions such as community service orders, probation, or public disclosure of violations, which are weaker than imprisonment or fines but stronger than administrative fines, are also proposed as alternatives.

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