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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] On August 5, the Ministry of Economy and Finance of South Korea announced plans to comprehensively review and overhaul regulatory policies based on company size, aiming to remove barriers to active corporate growth and align regulatory frameworks with global standards.
At the inaugural meeting of the Growth Strategy Task Force (TF), held at the Korea Chamber of Commerce and Industry and chaired by Deputy Prime Minister and Finance Minister Koo Yun-cheol, the government stated, “Enhancing corporate vitality for ‘real growth’ is our top priority. We will swiftly implement regulatory reforms and rationalize economic criminal penalties to alleviate corporate burdens.”
The meeting was attended by leaders from six major business organizations, including the Korea Chamber of Commerce and Industry, Korea International Trade Association, Korea Federation of SMEs, Korea Employers Federation, Korea Federation of Medium Business, and the Federation of Korean Industries.
Key measures include:
Gradual reduction of support for SMEs and mid-sized companies as they grow, rather than abrupt cuts;
Reorienting support toward high-impact business activities such as investment, R&D, AI adoption, and export market expansion;
Reviewing and adjusting the corporate size criteria applied across various legal and regulatory contexts, ensuring alignment with the original intent of each law.
In addition, the TF plans to rationalize economic criminal penalties, including easing the criminal liability risks faced by CEOs in cases such as breach of trust. The government aims to shift from punitive criminal measures to more proportionate civil penalties—such as fines and compensation—especially for minor or unintentional infractions. A blanket exemption for non-serious, unintentional violations is also under consideration.
However, the government emphasized it will impose heavier penalties for serious offenses, such as market manipulation and violations endangering public safety or health, to ensure effective deterrence.
These reforms are part of a broader effort to create a business-friendly environment and foster sustainable economic growth.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
