Ruling Party and Government Set Abolition of Breach of Trust Under Criminal Act as Basic Direction... Will Prepare Improvement Measures

Kim Byungki: "Moving Away from Criminal Punishment Absolutism"
Koo Yooncheol: "Reducing Criminal Penalties, Strengthening Financial Accountability"

On September 30, the Democratic Party of Korea and the government agreed to pursue the abolition of the crime of breach of trust under the Criminal Act, which has been criticized for making it difficult for companies to make normal management decisions. They also decided to accelerate the preparation of alternative legislation.

At a party-government consultation held at the National Assembly Members' Office Building on this day, Kim Byungki, the party's floor leader, stated, "Regulations have stifled self-employed individuals and small business owners, undermining economic vitality. The crime of breach of trust is a representative example," adding, "The Democratic Party has set the abolition of this crime as its basic direction. We will prepare practical improvement measures."

The crime of breach of trust under the Criminal Act is a provision that punishes those who, while handling another person's affairs, act against their duty to obtain property benefits for themselves or a third party, thereby causing damage to the principal.

The business community has long argued that even normal corporate activities could be punished under this law, leading to calls for its abolition or relaxation. Kim Byungki emphasized, "This is about moving away from the criminal punishment absolutism, a legacy of military dictatorship, and protecting citizens from unjust harm."

Han Jeongae, the party's policy committee chair, also said, "The global economy is not only prioritizing national interests but is now in an era of hegemonic competition. Past experiences and economic order practices are evolving into unpredictable new patterns. We must respond to these environmental changes," adding, "It is necessary to supplement institutional support so that citizens and companies can actively engage in economic activities."

Regarding the rationalization of economic criminal penalties beyond the crime of breach of trust, she mentioned, "There must be reviews and revisions to ensure that minor violations of obligations in citizens' daily lives are not subject to criminal punishment, and that excessive penalties are not imposed without opportunities for improvement after a violation is identified."

Yonhap News

The government has decided to first improve 10 criminal provisions among economic penalties that require urgent reform. In particular, it plans to review and classify 3,300 first-instance court cases related to the crime of breach of trust to facilitate the preparation of alternative legislation.

Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol stated, "While preparing measures to improve the crime of breach of trust, which has been identified as a factor constraining corporate management activities, we will also establish institutional mechanisms to ensure that well-intentioned business operators do not suffer harm. We will reduce criminal penalties but strengthen financial accountability. Minor violations will be converted to administrative fines to ease the burden on citizens. Issues that can be corrected through administrative sanctions will be addressed by imposing such sanctions first," he emphasized.

He also requested, "Please ensure that practical bills such as the Food Regulation Act and Outdoor Advertising Act, which have already been identified as economic criminal reform tasks and are pending in the National Assembly, can be passed as soon as possible."

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