[the300] The President: “Ensure companies aren’t hampered by excessive economic penalties”… In step with the Democratic Party,
(Seoul=News1) Reporter Yoo Seung-gwan: Kim Byung-ki, the floor leader of the Democratic Party, is giving a speech at the National Assembly in Yeouido, Seoul on the 19th. 2025.8.19/News1 Copyright (C) News1. All rights reserved. Unauthorized reproduction or redistribution, AI learning usage prohibited. /Photo=(Seoul=News1) Reporter Yoo Seung-gwan,
, The government has launched the ‘Economic Sanction Rationalization Task Force (TF)’ in line with President Lee Jae-myung’s directive, and the Democratic Party has decided to form an internal TF to discuss economic sanctions. The Democratic Party stated it would consider legislative measures to ease corporate criminal responsibilities while strengthening civil liabilities.
Democratic Party spokesperson Kim Hyun-jung informed reporters after a party meeting at the National Assembly in Yeouido, Seoul, on the morning of the 19th, “We are in the initial discussion stage,” and said this.
Spokesperson Kim stated, “Didn’t the President mention the need to review laws related to economic sanctions? There was a consensus on the need for inner-party discussions,” adding, “Instead of simply deciding to abolish special breach of duty offenses under the Commercial Act or breach of duty under the Criminal Act, there’s a need to comprehensively review both criminal and civil liabilities.”
She explained, “By easing criminal legal penalties and strengthening civil liabilities oppositely, the legislative intent would be preserved.”
Last month, during an emergency economic review TF meeting at the Presidential Office in Yongsan, Seoul, President Lee said, “There are talks these days about hesitancy in domestic investments due to potential imprisonment for corporate management mistakes,” and declared, “The government will promptly activate a TF for rationalizing economic sanctions to ensure corporate management activities aren’t hampered by excessive economic penalties.”
The President expressed, “While shifting (corporate activities) towards a stakeholder, consumer, and shareholder-centered approach, it raises questions about whether imposing criminal penalties beyond economic and financial sanctions for breaches of trust aligns with international standards,” and pledged to “act swiftly through regulatory rationalization to allow companies to engage in creative activities.”
Meanwhile, the Democratic Party plans to hold a National Assembly plenary session on the 21st to pass the Yellow Envelope Act (revisions to the Trade Union and Labor Relations Adjustment Act) and amendments to the Commercial Act.
The Yellow Envelope Act aims to expand the definition of employers to widen the scope of labor disputes. The key aspect of the Commercial Act amendment is to prevent large public companies with total assets of 2 trillion won or more from excluding the cumulative voting system in their bylaws and to increase the number of audit committee members elected separately from other board members at shareholders’ meetings from one to two. Business circles have expressed concerns that these two bills “may inhibit corporate management activities.”