Seoul: President Lee Jae Myung pledged Wednesday to launch a government task force to explore ways to ease excessive penalties on corporate activities in a bid to help reduce regulatory hurdles and boost investment. Lee outlined a series of measures for what he described as a “pragmatic, market-oriented” government, including easing outdated regulations and limiting excessive penalties, while encouraging companies to enhance shareholder value.

According to Yonhap News Agency, Lee emphasized the need to address concerns that breach of trust charges are being overly applied in ways that hinder business activity. “To ensure that corporate management activities are not stifled by excessive economic punishments, the government will immediately launch a task force to rationalize such measures,” he stated.

Acknowledging growing concerns among business leaders over the risk of criminal punishment, Lee said the government will pursue legislative and regulatory reforms during the upcoming regular session of the National Assembly. This initiative is aimed at fostering a more favorable environment for businesses to operate without the looming threat of severe penalties.

To further promote economic growth, Lee called for the swift creation of a 100 trillion-won (US$72.4 billion) public-private fund. This fund will be directed towards investing in cutting-edge industries, including artificial intelligence and renewable energy, to stimulate new engines of growth and ensure a robust economic future.