Seoul: Major business lobbies on Tuesday welcomed the government's decision to abolish the breach of trust charge in criminal law to ease burdens on companies' ability to make normal business decisions. Earlier in the day, the government and the ruling Democratic Party announced their decision to scrap the breach of trust charge under criminal law, assessing that it has excessively restricted normal business activities.

According to Yonhap News Agency, the Korea Chamber of Commerce and Industry (KCCI) lauded the move, saying the measure will reduce uncertainty in decision-making of companies. "The abolition of breach of trust charges, prioritizing administrative sanctions before criminal punishment, and shifting toward economic penalties instead of criminal penalties all reflect feedback from the business community," said Kang Suk-gu, an official at the KCCI.

The Federation of Korean Industries also welcomed the move, saying it would ease the burden of excessive penalties on companies. The Korea International Trade Association agreed, saying the decision, announced just two months after the launch of a government task force on rationalizing economic penalties, was a "timely and speedy" response.

The association said the changes would help reduce criminal liability risks stemming from criminal and labor laws and provide breathing room for investment and hiring.