South Korea Business Law Overhaul to Swap Jail Terms for Higher Fines

South Korea business law overhaul plans will scrap prison terms for most non-malicious corporate violations and significantly raise fines for serious misconduct, under reforms covering 331 economic statutes, the government said.

The South Korea business law overhaul shifts enforcement away from a punishment-first model toward corrective orders and financial sanctions to speed up resolution.

Under proposed changes, the Fair Trade Act’s cap on fixed fines for abuse of market dominance will rise to KRW10bn (USD7m) from KRW2bn, while revenue-based penalties could increase to as much as 20% of relevant sales from 6%. Similar increases will apply to subcontracting, franchising and retail regulations.