1. Background and Purposes of Study

The fact that chaebol provided large donations to the Mir Foundation and the K-Sports Foundation has been revealed through the media since July 2016 has sparked the so-called “non-progressive manipulation of state affairs” and the public attention has been drawn to the reason why the chaebol group made a large donation to these public foundations. This research was planned in the wake of this incident, and was intended to propose an alternative to normalizing the public foundation system of Korea.

2. Main Contents

a) Current Status of Public Foundation Corporation

According to an analysis of the current status of public corporations belonging to 57 business groups with assets of more than 5 trillion won, 51 of them had 165 public corporations. And there were 121 public corporations that starred the 32 conglomerates with assets of more than 10 trillion won.

b) the Legal Structure and Problems of the Public Foundation

Regarding the conceptual structure of the public foundation, we looked at the purpose, property, and organization of the corporation. And we also looked at the establishment and the dissolution of a public foundation, the structure of monitoring and supervision for public utilities, the structure of support for the public foundation, and so on.

c) Current Status and Limitations of the Criminal Law Countermeasures against the Public Foundation

Not only does the criminal and liability of a corporation not provided at all in the criminal law, but also because the majority of academia is in the position of negating a corporation's criminal abilities, I don't think it is realistic for a corporate offence to be punished. Even if it can punish a corporation, it cannot be expected to be penalized, and I don't think the means of compulsory investigation under the Criminal Procedure Act will be effective either.

d) Motive of the Illegal Use of Public Foundation

To derive an alternative, it is also necessary to analyse the motor aspects. In this article, we divided it up into the views of criminals, the views of the most powerful, and the views of chaebol.

3. Summary of Suggestions

a) Fundamental Reform of the Public Foundation System

As the public foundation system is in a state of total problems, the corporate system needs to be fundamentally reformed. So it's just a second-best task in finding a way to punish them. To this end, it should be noted that Japan has made a number of corporate reforms with experts from various fields.

b) Countermeasures against Corporate Crime

In applying the criminal code to a corporation, it is necessary to develop a different standard from the standard for natural people. By developing punishment and compulsory measures that conform to the characteristics of a corporation, it is necessary to realize the criminal responsibility of a corporation.

c) Other Considerations

While reform of the public foundation system has to focus on revising the Civil Law, it cannot be neglected to revise other laws as Tax Law."