Seoul: President Lee Jae Myung on Monday called for sweeping reform of unnecessary regulations that discourage companies and investors, stressing the need to cut outdated red tape. Lee made the remarks during a meeting on regulations held at the Korea Institute of Science and Technology in Seoul, noting that such punitive measures are both unnecessary and ineffective.

According to Yonhap News Agency, Lee highlighted the issue of excessive penalization in South Korea, pointing out that minor fines can result in lifelong criminal records for individuals. He emphasized that the country has “too many unnecessary” punitive provisions and advocated for “major reform” to address these concerns.

Lee also addressed the over-application of breach of trust charges, which he argued could unjustly imprison business leaders for mere investment mistakes. He contrasted this with foreign business practices, questioning how businesses can be expected to take risks under such restrictive conditions.

Proposing a shift in the approach to regulation, Lee suggested imposing harsh economic penalties on companies rather than resorting to criminal punishment. He cited the example of industrial accidents, where prolonged trials often result in minimal consequences for those involved, having little to no real effect on improving safety standards.

Since assuming office, Lee has committed to exploring ways to alleviate excessive penalties on corporate activities, with the aim of reducing regulatory barriers and stimulating investment in the South Korean economy.