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Kim Byung-ki, floor leader of the Democratic Party, speaks during a policy coordination meeting at the National Assembly in Yeouido, Seoul, on August 21. / Source: Yonhap News

The Democratic Party (DP) announced plans to reform economic criminal laws such as breach of trust, long criticized as stifling corporate activity. The party said it will ease criminal liability while strengthening civil accountability through measures such as punitive damages, aiming to align with “global standards” and create a more business-friendly environment.

Speaking at a policy coordination meeting at the National Assembly on August 21, DP Floor Leader Kim Byung-ki said a new task force will be launched to review key statutes.

“During the authoritarian military regimes, penal provisions were recklessly added whenever laws were made,” Kim said. “In particular, the breach of trust statute, combined with charges like abuse of power and obstruction of business, has been misused as a tool to pressure companies, government bodies, and economically vulnerable groups.” He stressed that such laws have burdened businesses and discouraged foreign investment, adding, “Now it is time to rationally reform economic penalties.”

The DP plans to set up a “Task Force on Rationalizing Economic Penalties and Civil Liability” to review breach of trust, abuse of power, and obstruction of business charges. At the same time, the party aims to strengthen civil liability by introducing punitive damages, class action lawsuits, and a Korean-style discovery system.

“This is a reform that ensures strict accountability for illegality while protecting the weak,” Kim said, vowing that the DP will deliver on its promise to build a “business-friendly and justly growing nation.”