'Super Minjudang', Will It Become a Bit Easier to Do Business in the 21st National Assembly?

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] As the opening of the 21st National Assembly approaches in about a month, voices within the 'super ruling party' The Democratic Party of Korea are growing louder, calling for a change in the economic policy direction.

On the 24th, a Democratic Party member-elect said in an interview with Asia Economy, when asked, "Do you think the Democratic Party's economic policies from the 20th National Assembly will continue into the 21st?" that "It no longer makes sense to think only about dividing the pie when there is no pie to begin with." He added, "To draw out corporate investment intentions amid the economic recession following the COVID-19 pandemic, a supportive political environment is necessary," and "the mindset of lawmakers must also change significantly."

A staff member responsible for the Democratic Party leadership's economic policy stance said, "It is not very meaningful to predict the 21st National Assembly based on the 20th," but added, "The situation is unfolding in a way that requires change from before." He continued, "Since President Moon Jae-in has mentioned the 'Korean New Deal' and is focusing on becoming a model country for overcoming the economic crisis, business leaders will be met more frequently, and more substantial economic policies will be introduced."

A Democratic Party official who was involved in the government's income-led growth policy said, "There is a general consensus that the minimum wage and the 52-hour workweek system were 'misguided arrows,'" and predicted, "The progressive claims that have been advocated so far will be toned down." Among the members-elect, a study group focusing on economics has already been formed. Former Gangwon Province Governor Lee Kwang-jae, returning to the National Assembly through the April 15 general election, has started preparations for a research group on economics and peace.

Companies are paying close attention to the Democratic Party's economic moves. A corporate official said, "There are many talks that it would become impossible to do business if all the Democratic Party's pledges are implemented," citing concerns especially about the cumulative voting system and the win-win cooperation bill. He added, "According to the win-win cooperation bill, due to the responsibility to prove when changing partner companies, there is a growing trend of shifting business partners overseas," and expressed concern that "premature economic policies could actually reduce win-win cooperation."

The policy pledge book released by the Democratic Party during the 21st general election includes amendments to the Fair Trade Act and Commercial Act, and the enactment of the Financial Group Integrated Supervision Act, which were called the 'Fair Economy 3 Laws' in the previous National Assembly, such as the cumulative voting system, multiple derivative lawsuits, abolition of the Fair Trade Commission's exclusive right to prosecute, and introduction of a financial group integrated supervision system. It also includes labor legislation strengthening labor rights, such as the phased ratification of ILO fundamental conventions and employment succession of partner companies upon business transfer, as well as regulations on large corporations, including raising stockholding standards for subsidiaries and grand-subsidiaries, blocking affiliate public interest corporations, treasury stocks, and indirect investments.

However, the minimum wage increase and the legalization of the 52-hour workweek system, which were included in the previous election pledge book, were omitted. Instead, detailed goals and strategies not seen in the 20th general election pledge book, such as 'fostering system semiconductors,' 'cultivating 100 mid-sized companies by 2024,' 'promoting the establishment of an AI research dedicated institution,' and 'supporting material, parts, and equipment companies,' have been notably included.

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