November 30, 2024

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The Ministry of Economy and Finance at the government complex in Sejong (The Korea Herald)

SEJONG -- South Korea will push for the abolishment of law provisions, which stipulate criminal punishment on businesses despite meager rule-violations, as part of effort to promote wider scale corporate activities and vitalize foreign investments.

Before seeking criminal punishment, the government will issue administrative sanctions in the first stage, the Finance Ministry and the Justice Ministry said during a meeting for revamping regulations in Daegu on Friday.

According to the two ministries, the targets are 32 provisions on criminal punishment in 17 laws, which are specified by 10 relevant ministries, including the Industry Ministry, the Environment Ministry, the Land Ministry and the Fair Trade Commission.

There is an urgent need to revise the 32 provisions, which have little relevance to people’s lives and safety, officials said.

Of the 32 targets, one is a provision on logistics facilities stipulates that businesses conducting construction of a logistics terminal without attaining endorsement will be subject to a one-year jail term or fines up to 10 million won ($7,500).

The two ministries said they would seek business suspensions instead of the jail term or fines.

These kind of provisions on criminal punishment “have been regarded as a factor, which hamper competitiveness of local businesses and burden foreign businesses operating here,” said First Vice Minister of Economy and Finance Bang Ki-sun.

The policy will be pushed via law revisions at the National Assembly or enforcement orders.

By Kim Yon-se (kys@heraldcorp.com)