<기사제목>Chairpersons of the Sangui: "The National Assembly Must Cooperate to Restore the Nation Affected by COVID-19"

[Asia Economy Reporter Ki-min Lee] The chairpersons of 73 chambers of commerce nationwide appealed to the 21st National Assembly to cooperate across party lines and demonstrate political leadership to support businesses and citizens affected by the novel coronavirus disease (COVID-19) and to restore economic dynamism.

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry (KCCI), along with other chamber chairpersons, announced the "Economic Sector Proposals to the 21st National Assembly Members" on the 1st, expressing this stance. The chairpersons identified three major tasks for achieving an advanced nation: ▲forming principles and norms of the 'common good (共同善)' ▲restoring economic dynamism ▲harmonious development of the economy and society.

First, the chairpersons proposed that the National Assembly establish a 'national vision of the common good' and 'rules of communication' that can be followed together despite differing values and interests, to derive and implement solutions to national issues. They emphasized that as the era is divided into pre- and post-COVID-19 times, unprecedented changes will pour in, urging the securing of structural flexibility to innovate the national system in response to rapidly changing environmental conditions. They also pointed out that outdated laws and systems no longer fit the times, causing entrenchment of vested interests and blocking new businesses, and requested the National Assembly to switch to a negative system that freely allows various economic activities and attempts except those that cause problems.

The chairpersons urged the government to establish a 'Legal and Institutional Innovation Task Force (TF)' directly under the president and the National Assembly to set up a 'Special Committee on Legal and Institutional Improvement,' calling for teamwork among the government, National Assembly, and economic sector. They also noted that the third supplementary budget bill (35.3 trillion won) to provide emergency liquidity support to small business owners and SMEs and to respond to the post-COVID era is pending in the National Assembly, emphasizing the urgent need for timely fiscal input such as the prompt passage of the supplementary budget to overcome the crisis.

They also pointed out the need to restore economic dynamism. To ensure that the Korean-style New Deal, including the promotion of untact (non-face-to-face) new industries and measures to revitalize consumption and investment announced in the second half economic policy direction, proceed as planned, related legislation such as the Medical Service Act and the Restriction of Special Taxation Act is necessary. Furthermore, citing Korea’s low proportion of self-made companies and the rare entry of new companies into the top 10 conglomerate rankings, the chairpersons pointed out that corporate renewal is also blocked. They stated that five major hurdles?Mother Test, entry barriers, certification barriers, death valley, and stigma of failure?block ventures, not market tests, and called for the installation of smart living labs supporting the commercialization of innovative products in major cities and provinces nationwide, allowing the establishment of corporate venture capital (CVC), and fostering a culture where large corporations pay appropriate prices to acquire venture companies.

For harmonious development of the economy and society, they also called for strengthening the legislative capacity of the National Assembly and securing social safety nets. The chairpersons pointed out in the proposal that the number of bills proposed in the 20th National Assembly reached 24,141, the highest ever and among the largest worldwide, making in-depth bill review difficult. Therefore, they requested the implementation of a legislative impact assessment system that evaluates the effects on various sectors of the economy and society during bill deliberation, as is done in major advanced countries.

They also requested the preparation of a roadmap based on accurate predictions and diagnoses of social safety net demand, noting that by around 2050, the proportion of the elderly population aged 65 and over will rise to about 40%, automatically increasing welfare expenditures, while the wave of the Fourth Industrial Revolution and the COVID-19 crisis are expected to cause bankruptcies of declining industries and marginal companies, employment disruptions, and insolvencies. They added that, like most advanced countries, alternatives focusing on minimizing economic impact or realizing beneficiary burdens should be considered.

Professor Cho Dong-chul of the KDI School of International Policy said, "To enter an advanced society, it is necessary to set a future-oriented vision by re-examining and rebuilding existing orders and systems to fit the times," emphasizing, "Now is a good opportunity as an atmosphere has been formed to overcome unproductive group selfishness for the prosperity of the national economy."

Woo Tae-hee, Executive Vice Chairman of the KCCI, said, "In the 21st National Assembly, it is time to review past communication methods in our society and induce fundamental changes in the economic and social operating system through comprehensive redesign of laws and systems," adding, "Especially, areas where the National Assembly can lead changes, such as establishing a Special Committee on Legal and Institutional Improvement or introducing legislative impact assessments, should be given special attention and managed intensively to make them achievements of this National Assembly."

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