Moon Joo-jae's 'COVID-19' Roundtable... Business Community Requests "Consideration of Corporate Tax Reduction" (Comprehensive)

President Moon Jae-in is holding an economic stakeholders' roundtable meeting to discuss COVID-19 response at the Blue House on the 18th. [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] On the morning of the 18th, President Moon Jae-in presided over the 'Major Economic Stakeholders Roundtable Meeting' at the Blue House to overcome the emergency economic situation caused by the novel coronavirus infection (COVID-19) crisis. At the meeting, the business community emphasized the reality of companies reaching their limits and proposed measures such as 'corporate tax reduction.'

Kang Min-seok, spokesperson for the Blue House, issued a written briefing in the afternoon regarding the roundtable meeting, stating, "The roundtable meeting, which included all economic stakeholders such as the business sector, labor sector, companies, financial sector, political circles, households, and government ministries, gathered wisdom to minimize the negative impact of the COVID-19 crisis on our economy and reaffirmed the nation's determination to recover the economy."

Spokesperson Kang then conveyed the main remarks of the attendees. Sohn Kyung-shik, chairman of the Korea Employers Federation, said at the meeting, "Labor and management must share the pain to save companies," and requested, "It would be good to symbolically consider a corporate tax reduction."

He also mentioned the situation of companies facing management difficulties and proposed measures including ▲easing loans from financial institutions ▲expanding credit loans ▲early execution of the original budget and supplementary budget ▲temporary significant reduction of airport usage fees paid by airlines and duty-free shops to public institutions ▲bold deregulation ▲expansion of currency swaps ▲extension of special working hours ▲supplementary legislation for special extended working hours system ▲postponement of National Pension and four major social insurance premium payments.

In particular, Chairman Sohn clearly opposed the 'disaster basic income' recently demanded by political circles and some metropolitan mayors, stating, "Some local governments argue for giving cash directly to individuals, but it is preferable to stimulate consumption by economic actors rather than giving cash."

In this regard, Kim Myung-hwan, chairman of the Korean Confederation of Trade Unions, argued for the necessity of disaster basic income, saying, "Extraordinary national fiscal management is needed," and "There are people who urgently need livelihood support. Workers in a shutdown state." He also positively evaluated the case of Hyundai Department Store Group, which decided to provide 3 billion won in cash support to employees of partner companies, saying, "Chaebols and large corporations, where wealth is concentrated, must actively fulfill their social responsibilities to share the pain."

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry (from the left), Kim Dong-myeong, Chairman of the Federation of Korean Trade Unions, Kim Myung-hwan, Chairman of the Korean Confederation of Trade Unions, Son Kyung-sik, Chairman of the Korea Employers Federation, and Kang Ho-gap, Chairman of the Korea Federation of Medium-sized Enterprises, are listening to President Moon Jae-in's remarks at the economic stakeholders' roundtable meeting held at the Blue House on the 18th to discuss COVID-19 response.
[Image source=Yonhap News]

Park Yong-man, chairman of the Korea Chamber of Commerce and Industry, supported Chairman Sohn's remarks, saying, "An overwhelming number of companies feel a liquidity crunch," and "Although the government has introduced various measures, speed is the issue. Drastic measures that reduce administrative costs and skip steps to speed up are necessary." He added, "Regarding the issue of allowing businesspeople to enter the country, the business community is also sending letters to various countries requesting cooperation."

Statements from small business owners and small and medium-sized enterprises (SMEs), who have been hit hardest by the COVID-19 crisis, followed. Kim Im-yong, acting president of the Korea Federation of Small and Medium Business, appealed, "Small business sales have dropped by 60-90%," and requested ▲emergency livelihood support of 2 million won for three months ▲improvement of credit rating evaluation criteria ▲easing of loan maturity extensions.

Kim Ki-moon, chairman of the Korea Federation of SMEs, said, "Please guide commercial banks more actively to consider loan maturity extensions and additional loans," and also requested a "significant relaxation of employment retention support fund requirements."

There were also moves for support from the financial sector. Kim Tae-young, chairman of the Korea Federation of Banks, said, "We will carefully listen to voices from the field and promote interest payment deferrals," and added, "We will approach small business owners as companions sharing an umbrella when it rains. The financial sector will actively do its best to overcome the crisis."

Lee Dong-geol, chairman of KDB Industrial Bank, proposed, "One unprecedented measure is the supply of funds on an unprecedented scale," and suggested, "The entire financial sector should unite, hold a pan-financial sector agreement ceremony, and act jointly."

Spokesperson Kang conveyed, "After hearing the remarks of the attendees, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated, 'We will promptly implement measures that can be taken in consultation with relevant ministries.'"

Following Deputy Prime Minister Hong's remarks, President Moon said in his closing remarks, "If a greater decision is needed, it will be made at the emergency economic meeting presided over by the president." In particular, President Moon emphasized "speed" as the most important factor, mentioning the word 'speed' five times.

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