For low-density parity-check (LDPC) codes, the penalized decoding method based on the alternating direction method of multipliers (ADMM) can improve the decoding performance at low signal-to-noise ratios and also has low decoding complexity. There are three effective methods that could increase the ADMM penalized decoding speed, which are reducing the number of Euclidean projections in ADMM penalized decoding, designing an effective penalty function and selecting an appropriate layered scheduling strategy for message transmission. In order to further increase the ADMM penalized decoding speed, through reducing the number of Euclidean projections and using the vertical layered scheduling strategy, this paper designs a fast converging ADMM penalized decoding method based on the improved penalty function. Simulation results show that the proposed method not only improves the decoding performance but also reduces the average number of iterations and the average decoding time.