Economic Group Leaders: "Business Conditions Will Be Difficult Next Year, Regulatory Innovation Needed" (Comprehensive)

COVID-19 Crisis Expected to Persist Next Year
Regulatory Easing Needed to Open Business Opportunities

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry

[Asia Economy Reporters Changhwan Lee, Dongwoo Lee] Leaders of major economic organizations unanimously agreed in their 2021 New Year's messages that difficult business conditions are expected to continue next year due to the economic crisis caused by the novel coronavirus infection (COVID-19), emphasizing the need for regulatory innovation to save Korean companies.

On the 30th, Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, stated that "it is time to consider the 'economic aftereffects' caused by the COVID-19 crisis." In his New Year's message released that day, Chairman Park said, "We must begin to find solutions to accumulated structural vulnerabilities such as private debt, asset market imbalances, and polarization in the labor market."

Chairman Park expressed concern that "the post-COVID era might become a 'league of major countries' leading the digital and bio sectors," adding, "Before the gap with these countries widens further, we must open 'all windows of opportunity' to move toward the future," emphasizing the restoration of economic dynamism.

He also said, "Above all, we must first innovate outdated laws and systems to boost the metabolism of companies and industries," and added, "We hope to review the 'regulatory sandbox' system introduced two years ago to resolve concerns about business suspensions due to the expiration of special periods and to further spread the innovative efforts of startups."

Huh Chang-soo, Chairman of the Federation of Korean Industries: "Regulations that shackle companies still exist, regulatory relief is urgent"

Huh Chang-soo, Chairman of the Federation of Korean Industries, also emphasized that next year the government should reduce regulations that shackle companies so that Korean companies can compete on equal terms with foreign companies.

Chairman Huh stated, "Next year, the government should withdraw policies that impose shackles or increase cost burdens only on Korean companies and support more entrepreneurs to fully exercise their entrepreneurial spirit and compete freely in the market."

Huh Chang-soo, Chairman of the Federation of Korean Industries.

He added, "At the very least, our companies must be able to compete equally with foreign companies in the global market," and said, "A corporate environment that meets global standards will be the foundation for our economy's sustainable growth."

He predicted that 2021 could be a "year at a crossroads between life and death" for the Korean economy. The end of COVID-19 is unknown, the United States is about to inaugurate a new government, but there is no sign of resolution to the US-China trade conflict. Therefore, it is very difficult to predict how exports, investment, and consumption, which support our economy, will perform.

Sohn Kyung-shik, Chairman of the Korea Employers Federation

Son Kyung-sik, Chairman of the Korea Employers Federation, also expressed deep concern about the legislative processing of corporate regulatory bills by the political sphere and urged regulatory relief.

Chairman Son said, "This year, a slew of bills restricting companies, such as amendments to the Commercial Act and the Labor Union Act, were legislated," adding, "Next year, regulations that hinder private economic actors from focusing on economic activities with confidence about the future must be significantly eased, and the corporate tax environment should be improved."

He continued, "Supplementary legislation should be considered for the Commercial Act and the Fair Trade Act passed by the National Assembly this year," and emphasized, "Additional regulatory legislation such as the introduction of class-action lawsuits, strengthening of punitive damages, and enactment of the Serious Accidents Punishment Act should be carefully reviewed considering industrial impacts."

Kim Ki-moon, Chairman of the Korea Federation of SMEs, said, "We will focus policy capabilities to revive the entrepreneurial spirit of small and medium-sized business owners, expand investment, and create quality jobs in preparation for the post-COVID-19 era," emphasizing, "We will block new regulatory legislation and abolish existing regulations."

Regarding the Serious Accidents Punishment Act, Chairman Kim pledged, "We will either halt discussions on the enactment of the law or at least ensure that representatives of small and medium-sized enterprises can continue their business activities."

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