President Lee Jae Myung presides over a meeting with senior aides and secretaries at the presidential office in Seoul. (Image courtesy of Yonhap)
SEOUL, Sept. 15 (Korea Bizwire) — President Lee Jae Myung on Monday urged a broad rollback of outdated regulations and punitive measures that, he argued, have long stifled corporate initiative and deterred investment.
Speaking at a meeting on regulatory reform at the Korea Institute of Science and Technology in Seoul, Lee said the country must abandon rules that no longer serve their purpose, particularly those that punish companies and individuals with what he described as “needless criminalization.”
“There are far too many ex-convicts in South Korea because people end up with lifelong records for fines as low as 50,000 to 100,000 won (US$36 to $72),” Lee said. “We have accumulated far too many unnecessary punitive provisions, and now is the time for major reform.”
The president singled out the frequent application of breach of trust charges, noting that corporate executives can face imprisonment for making investment decisions that later prove unsuccessful. “This is unimaginable for foreign companies,” he said. “How can we expect businesses to take risks under such conditions?”
Instead of imposing criminal penalties, Lee called for stronger financial sanctions on corporations, which he argued would create greater accountability without discouraging entrepreneurship. He cited industrial accidents as a case in point, saying that lengthy trials typically end with only a handful of low-level employees briefly detained—an outcome, he said, with little deterrent effect.
Since taking office, Lee has vowed to reshape the country’s regulatory landscape, pledging to cut excessive red tape and ease burdens on corporate activity. Monday’s remarks underscored his push to shift South Korea away from punitive traditions toward a more investment-friendly environment.
M. H. Lee (mhlee@koreabizwire.com)
