Chairman of the National Assembly's Political Affairs Committee: "Seeking to Increase Utilization of the Draft Fund... The Three Economic Laws Are 'Pro-Business Laws'"

Interview with Yoon Kwan-seok, Chairman of the Political Affairs Committee

Photo by National Assembly Press Photographers Group

[Asia Economy Reporter Park Cheol-eung] Yoon Kwan-seok, chairman of the National Assembly’s Legislation and Judiciary Committee, stated that he will "seek ways to increase the utilization of the Industrial Stabilization Fund (GISF)." This fund was established by the government to support industries in crisis due to the COVID-19 pandemic, but it has been criticized for its high barriers and poor execution performance. Regarding the "Economic 3 Laws (Commercial Act, Fair Trade Act, and Financial Group Supervision Act)," he claimed they are "pro-business laws."

In a recent interview with Asia Economy, Chairman Yoon said, "There are talks that the conditions for the GISF are difficult and there are credit issues, so companies do not even apply. We need to look into the reasons for this." He added, "If the criteria are relaxed, we need to consider whether companies can actually utilize it, and since it involves public funds, there is also the issue of accountability. We will realistically consider ways to increase its utilization."

He also mentioned, "In the case of Eastar Jet, it is difficult to receive the GISF, so other methods must be found."

The government established a 40 trillion KRW GISF at the Korea Development Bank in May, targeting major industries related to key infrastructure such as aviation, shipping, shipbuilding, automobiles, general machinery, electricity, and telecommunications. The support methods include loans and payment guarantees. However, only Asiana Airlines and Jeju Air have applied.

Democratic Party lawmaker Jung Il-young stated at last month’s Ministry of Economy and Finance audit, "Companies with total borrowings of 500 billion KRW and more than 300 employees face high thresholds for application, and strict conditions such as maintaining at least 90% of employees for six months after receiving support, as well as high interest rates, have been identified as reasons for the poor performance of GISF support."

In response, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki said, "The National Assembly set strict requirements, and the government is executing accordingly," adding, "I do not think it is wise to rush to exhaust the 40 trillion KRW fund unconditionally." He continued, "We are making decisions considering the strict requirements set by the National Assembly."

Regarding the "Economic 3 Laws," Chairman Yoon said, "Now it is time for the standing committee," and added, "I believe discussions with the business community will be possible. While there is consensus on the overall framework, discussions on how to arrange the details will lead to the passage of the bills."

He further stated, "Some call them the '3 laws that strangle businesses,' but which government would want to strangle businesses?" He emphasized, "We should not confuse companies with their owners. These are 'pro-business 3 laws' and can be seen as 'basic order laws.'"

Chairman Yoon also said, "The opposition party is trying to delay, but discussions must take place," adding, "If struggling companies collapse, employment issues will arise. Fair rules are necessary for companies to grow. I hope these laws will definitely pass in this regular session of the National Assembly."

Regarding problems with private equity funds, he said, "The mutual verification and oversight duties between supervisory agencies and trustees are lax and need to be strengthened," adding, "It is a fact based on evidence that there are clear loopholes. While revitalizing private equity funds, such incidents must not continue."

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