Korea Federation of SMEs Proposes Improvement Measures for "Rationalization of Economic Criminal Penalties"

Criminal Penalties Frequently Imposed Even for Simple Administrative Errors in Areas Closely Tied to Everyday Lives
Need for a Rational Sanctions System, Such as Converting to Fines

The Korea Federation of SMEs announced on the 17th that it had submitted improvement proposals on the "Rationalization of Economic Criminal Penalties" to the government and the National Assembly. This move comes from the assessment that small and medium-sized enterprises (SMEs) and small business owners are exposed to excessive legal risks due to economic criminal penalty regulations.

Earlier, on September 4, the Korea Federation of SMEs held a "Communication Meeting for SMEs on the Rationalization of Economic Criminal and Civil Liabilities" with the Democratic Party of Korea's Task Force on Economic Criminal and Civil Liability Rationalization, gathering opinions from the field.

The federation emphasized the need for improvement, noting that not only the abolition of the crime of breach of trust, but also the unreasonable practice of imposing criminal penalties for simple administrative errors or minor violations occurs frequently in areas closely related to people's livelihoods. For example, small business owners such as cafe and convenience store operators are required to install outdoor advertisements like signs or banners, but even a simple omission of a change notification can result in a fine, placing a significant burden on their livelihoods. There have also been concerns that simple administrative mistakes, such as failing to measure pollutants or keep records as required by the Clean Air Conservation Act, can be subject to criminal penalties, causing anxiety among business owners.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, stated, "Compared to large corporations, SMEs lack legal support staff, so the same regulations have a much heavier impact." He added, "A system that leads to criminal penalties for simple mistakes discourages business management activities and negatively affects new investment and job creation." Kim further stated, "I hope the government and the National Assembly will rationally revise unreasonable economic criminal penalty regulations to create an environment where SMEs can confidently pursue challenges and innovation."

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