Lee calls for drastic reform of unnecessary regulations against companies

President Lee Jae Myung speaks during a discussion at the Korea Institute of Science and Technology in Seoul, Monday. Courtesy of the presidential office

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for sweeping reform of unnecessary regulations that discourage companies and investors, stressing the need to cut outdated red tape.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.

"There are far too many ex-convicts in South Korea because people end up with lifelong records for fines as low as 50,000 won ($36) to 100,000 won," Lee said.

Lee added that South Korea has "too many unnecessary" punitive provisions, calling for "major reform."

He also addressed concerns that breach of trust charges are being excessively applied, saying a business leader can end up in prison for a wrong investment decision.

"This is unimaginable for foreign companies," he said. "How can we expect businesses to take risks under such conditions?"

Lee instead suggested shifting toward imposing harsh economic penalties on the companies, which he argued as far more effective than criminal punishment.

"If we look at industrial accidents, trials go on for years, and in the end, only a few working-level employees are detained and released shortly after with no real effect," he said.

Since he took office, Lee has vowed to explore ways to ease excessive penalties on corporate activities in a bid to help reduce regulatory hurdles and boost investment.