'If Closure Not Reported, Maximum Fine Reduced to One-Third'... Revising Economic Penalty Regulations

The government has decided to revise about 100 economic penalty provisions to help business owners and self-employed individuals facing an economic crisis.

On the 2nd, the Ministry of Economy and Finance and the Ministry of Justice reported on "Regulatory Innovation to Enhance Corporate Investment and Vitality of the People's Economy" at the '3rd Regulatory Innovation Strategy Meeting' held at the Metaverse Hub Center in Seongnam, Gyeonggi Province, presided over by Prime Minister Han Duck-soo.

On the same day, the 'Second Improvement Task for Economic Penalty Provisions,' which promotes the improvement of 108 economic penalty provisions to support business owners and self-employed individuals struggling in the field of livelihood, was also announced.

Related ministries, including the Ministry of Justice and the Ministry of Government Legislation, decided to improve the penalties and sentencing of 62 "major economic penalty provisions" that could stifle corporate creativity due to excessive regulation.

The Fair Trade Act provision that punishes exclusionary abuse acts that hinder other businesses' market participation with imprisonment of up to three years or a fine of up to 200 million won will be changed to "penalties after corrective measures." The Tourism Promotion Act provision that punished the destruction or removal of certification documents such as official standards with imprisonment of up to two years or a fine of up to 20 million won will be changed to a "fine of up to 1 million won" instead of a penalty.

Twenty-three "life-related regulations" that have low crime severity but significantly impact low-income groups and the self-employed will also see eased penalties.

The Food Sanitation Act provision that punishes failure to report changes such as business closure with imprisonment of up to three years or a fine of up to 30 million won will be reduced to "imprisonment of up to one year or a fine of up to 10 million won." The Certified Public Accountant Act provision that punishes failure to prepare job-related ledgers with a fine of up to 3 million won will be eased to a fine of up to 3 million won.

Twenty-three penalty provisions that have been effectively obsolete with no cases filed in the past five years will also be rationalized. The government plans to promote this improvement plan centered on the Ministry of Government Legislation and submit it to the National Assembly in May.

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