[Exclusive] Ruling Party Turns Cautious on Abolishing Breach-of-Trust Charges as Lee's Approval Rating Falls

[Financial News] The government has drawn up a plan to abolish breach-of-trust charges and replace them with a special law on property crimes. However, the Democratic Party of Korea (DPK), which received the report, has decided to first consider whether the charge should be abolished at all. The ruling party and the government are now effectively at odds over the issue.
A DPK lawmaker on the National Assembly's Legislation and Judiciary Committee told this paper in a phone interview on the 30th that, after the Ministry of Justice reported a replacement special law at a party workshop, "it is hard to say whether the final plan, after ruling party-government consultations, will remove the breach-of-trust provision entirely or simply improve it so that it no longer interferes with business judgment."
Since last year, the government and the ruling party had been moving toward a full abolition of breach-of-trust charges, with the Ministry of Justice preparing replacement legislation. But after the ministry presented an alternative special law about a year later, the ruling party shifted to a more cautious stance, saying it would first reconsider whether the charge should be abolished.
The Ministry of Justice is expected to finalize the special law as a replacement for breach-of-trust charges and report it to the committee soon. The final version will then be shaped through consultations between the ruling party and the government. During that process, the DPK is likely to revisit whether the charge should be abolished completely.
Kim Seung-won, the ruling party's secretary on the committee and a nominee for the next justice minister, also said at the workshop on the 28th that he had received the ministry's report. He added, "There are proposals from the National Assembly as well, so once we receive the ministry's plan, we will review it in detail." This suggests that the 'National Assembly proposals' to be discussed alongside the government plan include one that would keep the breach-of-trust charge itself in place.
Even in the early stages of the debate, some pointed out that abolishing the charge was not the only way to reduce the burden on business judgment. They argued for revising the provision to reflect court precedents that recognize exceptions for business judgment. A DPK floor official said, "We can leave in place the clearly necessary parts of the charge while also easing concerns about investigative overreach and interference with business decisions."
The ruling party's shift in tone appears to be linked to the drop in Lee Jae-myung's approval rating. It has fallen into the 30% range, the lowest since he took office. At the same time, critics are linking the move to abolish breach-of-trust charges with Lee's trial in the Daejang-dong case. They argue that deleting the charge could lead to dismissal of the case.
Cheong Wa Dae is also aware of the issue. A senior official said on the 28th, in response to media reports about the replacement special law, that "the reform plan has not been finalized, and the review is being led by the Ministry of Justice, not Cheong Wa Dae." The official added, "We understand that the government is carefully reviewing the matter to ensure there is no gap in punishment for serious illegal acts such as intentional misappropriation of assets and self-dealing for private gain."
[email protected] Kim Yun-ho Reporter