Son Kyung-sik Meets President Moon, Requests Government Policy Response to Overcome COVID-19

Sohn Kyung-shik, Chairman of the Korea Employers Federation. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kiho Sung] Sohn Kyung-shik, Chairman of the Korea Employers Federation (KEF), on the 18th requested President Moon Jae-in to take an active role in overcoming the economic crisis caused by the spread of the novel coronavirus infection (COVID-19).

According to KEF, Chairman Sohn attended the 'Roundtable Meeting with Major Economic Stakeholders' held at the Blue House, presided over by President Moon, and said, "Due to COVID-19, human and material exchanges between countries have been blocked for the time being, causing serious damage to industrial activities themselves." He added, "Therefore, the government's policy role is necessary to overcome the economic crisis caused by COVID-19 early and minimize the damage, and all economic stakeholders must cooperate with each other and make their best efforts."

Chairman Sohn first stated that, as an emergency measure for companies and self-employed individuals facing management difficulties, "it is necessary to expand credit loans by easing loan requirements at financial institutions."

He also suggested, "To stimulate demand and boost the economy, the government should promptly execute the main budget, supplementary budget, and public institution funds," and requested, "Until economic activities stabilize, social insurance premiums such as the National Pension and Health Insurance should be deferred for a certain period."

He emphasized that industries severely affected by COVID-19, such as aviation, distribution, and tourism, require more active support, asking for a temporary significant reduction in airport usage fees and duty-free shop rents within airports.

Chairman Sohn said that in addition to the four industries designated by the government as special employment support sectors?travel agencies, tourism accommodation, tourism transportation, and performance industries?additional employment support is needed for heavily affected sectors such as theme parks, resort industries, and the film industry.

He noted, "As companies recently expand telecommuting, issues such as working hours management and industrial accidents have arisen," and requested, "Please prepare government-level guidelines to promote telecommuting."

Regarding the recently discussed disaster income support measures, he expressed his opinion, "We should refer to cases in other countries where the effect of cash payments was limited," and stated, "It is necessary to further expand support to ease companies' expense burdens."

He also suggested that although South Korea’s foreign exchange reserves exceed 400 billion dollars, it would be safer to expand currency swap agreements further, as another foreign exchange crisis could occur at any time.

Chairman Sohn said, "Although the situation is very difficult, at times like this, labor and management must share the pain to save companies and create competitive enterprises," and added, "The government should also consider modernizing various regulations, including symbolic measures such as corporate tax cuts, to revitalize the economy by boosting corporate morale."

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