President Moon: "Proactive Response to Economic Damage from COVID-19"... Business Community "Focus on Investment" (Summary)

Hong Nam-ki Deputy Prime Minister "Actively Considering Reduction of Air Freight Tariff Rates for Emergency Transport of Parts... Minimizing Reduction of Korea-China Air Routes"

President Moon Jae-in is speaking at the economic sector meeting on COVID-19 response held at the Korea Chamber of Commerce and Industry in Jung-gu on the morning of the 13th. [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] On the 13th, President Moon Jae-in held a meeting with the heads of major domestic conglomerates and economic organizations regarding the COVID-19 situation, stating, "We will soon prepare preemptive measures against the expected damages by industry," and added, "We will actively support corporate investment and innovation by strengthening bold tax reductions, regulatory exemptions, and location support." The business community also united, expressing their commitment to 'investment' to minimize economic fallout and overcome the crisis.

Kang Min-seok, spokesperson for the Blue House, disclosed key remarks from participants of the 'COVID-19 Response Economic Sector Meeting' held for about 1 hour and 30 minutes at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, through a written briefing on the same day.

Samsung Electronics Vice Chairman Lee Jae-yong, who spoke first, said, "In the IT industry, even though we try to overcome the COVID-19 situation with preparations in various aspects, there are practical difficulties," but emphasized, "However, crises have always existed, and we can overcome them." He particularly noted, "The difficulties faced by partner companies are greater than those of Samsung Electronics," promising, "We will carefully ensure that practical support is provided."

Vice Chairman Lee also stressed repeatedly, "The fundamental duties of companies are job creation, innovation, and investment," adding, "The most important thing is job creation. I will personally oversee this." He mentioned traditional markets, small business owners, and flower farmers who are suffering sales impacts, saying, "Samsung will look for ways to help."

Samsung Electronics Vice Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, and LG Group Chairman Koo Kwang-mo are attending the 'COVID-19 Response Economic Meeting' hosted by President Moon Jae-in at the Korea Chamber of Commerce and Industry in Jung-gu on the morning of the 13th.
[Image source=Yonhap News]

Hyundai Motor Vice Chairman Yoon Yeo-cheol reported on factory operations and parts procurement status, requesting, "Please temporarily reduce air freight tariffs for transporting parts from Chinese factories to sea freight levels," and appealed, "I hope special exemptions will be applied."

SK Group Chairman Chey Tae-won also requested, regarding the procurement of semiconductor core parts such as wafers, "Please ask the Chinese government not to reduce cargo air transport flights." He emphasized, "Going forward, SK will focus on investment and job creation," and added, "We will maintain investment and employment at last year's levels." SK is encouraging employees to refrain from using the company cafeteria once a week to revitalize local small businesses.

LG Group Chairman Koo Kwang-mo said, "We are currently reviewing production strategies to establish a stable parts procurement supply chain in light of this situation," and added, "It is necessary to diversify and localize core material parts to reduce dependence on specific regional countries." He also stated, "We have realized the importance of small and medium-sized partner companies," and promised, "We will expand manpower and technical support for partner companies."

Lotte and CJ, whose main business sectors include distribution, food, and services, also voiced concerns. Lotte Group Vice Chairman Hwang Kak-gyu expressed worry, saying, "Social vitality has immediately declined, and small-scale distributors are concerned," noting, "Lotte Hotel has had 28,000 room cancellations, and sales of tenants in Lotte World Mall have significantly decreased." He requested, "We ask for extraordinary measures such as tax or financial support for small and medium-sized enterprises and small business owners." Vice Chairman Hwang also invited President Moon to visit shopping malls to stimulate consumption, saying, "You will be welcome if you come."

CJ Group Chairman Lee Jae-hyun mentioned the film "Parasite," which won four Academy Awards, saying, "Even during the COVID-19 crisis, talking about movies relaxes people's minds," and added, "This crisis will be overcome in a short time." He continued, "CJ is also affected in various ways, but investment and job creation will proceed as planned," and requested, "We hope the government will provide more support in difficult sectors such as aviation, tourism, and distribution."

President Moon Jae-in listens to the remarks of Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, at the 'COVID-19 Response Economic Council Meeting' held at the Korea Chamber of Commerce and Industry in Jung-gu on the morning of the 13th. [Image source=Yonhap News]

The meeting also included five heads of economic organizations, including Park Yong-man, chairman of the Korea Chamber of Commerce and Industry. Chairman Park said, "Due to consecutive incidents such as the response to materials, parts, and equipment (SoBuJang) and COVID-19 quarantine, government response cohesion has increased," and added, "After the situation is resolved, mid- to long-term policy efforts such as regulatory innovation and fostering the service industry must continue."

Son Kyung-sik, chairman of the Korea Employers Federation, requested, "Please legislate for flexible working hours and promptly advance the legislation of the flexible working system," and also suggested, "Through SARS and MERS, national disease control tasks have become important. The status of the head of the Disease Control Headquarters should be elevated."

After hearing all remarks from business representatives, the government responded. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "We are actively considering reducing tariff rates on air freight for urgent parts transportation," and added, "I will consult with the Minister of Land, Infrastructure and Transport to minimize reductions in Korea-China air routes." He also stated, "We will announce industry-specific measures for sectors heavily affected such as tourism, distribution, and accommodation next week."

This is the second time President Moon has met with heads of major conglomerates in one place since last July, following Japan's export restrictions on core semiconductor materials. This reflects the recognition of the serious economic impact of the COVID-19 crisis and the intention to seek ways to overcome it together with the business community.

Attending from the government were Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, Minister of Trade, Industry and Energy Sung Yun-mo, Minister of SMEs and Startups Park Young-sun, and Financial Services Commission Chairman Eun Sung-soo. From the Blue House, Chief of Staff Noh Young-min, Policy Chief Kim Sang-jo, Senior Secretary for Economic Affairs Lee Ho-seung, and related secretaries were present.

This content was produced with the assistance of AI translation services.