Kim Byung-ki (R), floor leader of the ruling Democratic Party, speaks with Finance Minister Koo Yun-cheol during a party-government consultation at the National Assembly in Seoul on Tuesday. (Yonhap)
Kim Byung-ki (R), floor leader of the ruling Democratic Party, speaks with Finance Minister Koo Yun-cheol during a party-government consultation at the National Assembly in Seoul on Tuesday. (Yonhap)

The ruling Democratic Party and the government agreed Tuesday to push for abolishing the breach of trust charge in criminal law to ease burdens on companies' ability to make normal business decisions, the DP said.

DP floor leader Kim Byung-ki announced the plan during a task force meeting on rationalizing economic penalties, joined by the finance and justice ministers and other senior officials.

"The Democratic Party and the government have decided to move toward abolishing the breach of trust charge," Kim said. "Rationalizing civil liability for economic crimes is aimed at protecting public rights and supporting the livelihood economy."

Kim said excessive economic penalties have criminalized normal business decisions by companies, weighing on their management and investment, and pledged to improve the system to prevent any gaps in punishing serious crimes.

Finance Minister Koo Yun-cheol said the government will ease criminal punishment on corporate activities while strengthening their financial liability.

"The government will convert minor administrative violations into fines to lessen the public burden," he said, adding that violations that can be remedied with administrative actions will be handled as such.

The move follows concerns in the business community over a recent amendment to the Commercial Act, which expanded the fiduciary duty of board members to all shareholders. Business groups have argued the law's broad scope and vague standards could expose executives to excessive liability and criminal charges over disputed management decisions. (Yonhap)