The ruling Saenuri Party said Thursday it is reviewing ways to expand the criteria of class action lawsuits and punitive compensation systems to prevent chaebol’s abuse of power.

The party’s gathering for economic democratization comprising former and incumbent lawmakers said at a press conference that they will push for the class action suits currently restricted to securities-related cases to be expanded to other areas. The punitive damages system that is currently only applied to violations related to subcontracts or technology extortion would also be extended to any unfair acts by large conglomerates, they said.

The Saenuri Party has been churning out measures to curb local conglomerates’ irregularities as part of its pledges made in the April general elections. The party has been adopting left-leaning policies ahead of the December presidential election in particular, for which economic democratization and better welfare have become key slogans.

The members said they are also reviewing ways to amend the Fair Trade Commission’s exclusive right to charge against conglomerates’ irregularities that critics claim lead to softer punishments.

By revising the Fair Trade Act, they would obligate the commission to take due measures against any violations by large businesses, enable consumers to file suits against unfair trade without going through the commission, and improve the leniency system for penalties imposed on price-colluding companies.

The gathering also said that they are reviewing ways to extend the restrictions on industrial capital from owning banks to other securities and insurance companies.

“In order to resolve problems associated with the industrial capital owning non-banking sector, we will promote changes among chaebol-owned financial affiliates to become intermediary financial holding companies,” said Rep. Kim Sang-min, who is planning to present the relevant bills.

The members said they will start to gather consensus from the rest of the party lawmakers by presenting the prepared bills.

By Lee Joo-hee (jhl@heraldcorp.com)