Democratic Party Economic Criminal Penalty TF Considers Alternative Legislation in Addition to Abolishing Breach of Trust

Criminal Penalties Affecting Livelihoods Also Targeted for Reform
Focus on Cases of Excessive Penalties
First Set of Policy Tasks to Be Announced This Month

The Economic Criminal Penalty and Civil Liability Task Force (TF) of the Democratic Party of Korea has decided to review the abolition of the crime of breach of trust outside the Criminal Act, while also considering measures to clarify the principle of business judgment. In cases where excessive criminal penalties are imposed even for minor offenses or when due diligence has been observed, the TF plans to develop policy tasks through consultations with the government within this month.

On September 18, the TF held a plenary meeting at the National Assembly to discuss rationalization measures for economic criminal penalties, including the crime of breach of trust. Kwon Chilsung, head of the TF, stated, "The crime of breach of trust has been criticized for its abstract and vague requirements, which have been cited as a factor discouraging business decision-making by companies." He added, "The TF is considering three directions: abolishing the crime of breach of trust, clarifying the principle of business judgment according to case law, and preparing alternative legislative bills."

Kwon also said, "The TF is working closely with the government's Economic Criminal Penalty TF," and introduced, "The Ministry of Justice is currently analyzing all 3,300 types of breach of trust verdicts from the past five years and will thoroughly examine the pros and cons of each alternative based on this analysis." He continued, "We are also actively considering whether to abolish similar breach of trust provisions stipulated in laws outside the Criminal Act. While revision of the crime of breach of trust is essential, we are also listening to on-site opinions that the crime has served to prevent misconduct by corporate members."

The TF also plans to seek rationalization of criminal penalties affecting the livelihoods of ordinary people, along with the crime of breach of trust. Kwon stated, "Together with the government, we are closely reviewing cases where excessive criminal penalties are imposed even for minor offenses or when due diligence has been observed," and added, "Based on this, we will announce the first set of policy tasks after consultations with the government within this month."

The proposed improvements reportedly include cases where criminal penalties are imposed for administrative omissions such as failure to report changes in business names or locations for businesses like lodging or beauty salons, or for delays in obtaining updated safety certifications for outdoor mobile robots after minor parts are replaced.

Meanwhile, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol stated during a government Q&A session on economic affairs at the National Assembly the previous day, "Overall, we are reviewing around 6,000 economic criminal penalties, and if there are violations committed in good faith without gross negligence or intentional misconduct, we will seek to correct them whenever possible. We plan to prepare a bill for the National Assembly as early as September and aim to improve about 30% within a year. The crime of breach of trust is included among these."

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