Companies Stuck in the Mire... "Rapid Economic Recovery? Depends on the Moon Administration"

[Biden and Korean Companies] Survey of 20 Leading Domestic Industry Representatives
"Repeal or Ease Anti-Business Regulations Such as the Serious Accident Punishment Act" Comprehensive Deregulation 47.5%
Tax Support Including Investment Tax Credits Also High at 22.5%

[Asia Economy Reporter Kim Hyewon] One out of two anonymous policy suggestions was for ‘comprehensive deregulation.’

On the 8th, when this outlet asked 20 leading domestic companies by industry about the government support needed for early overcoming of COVID-19, 47.5% responded this way. These companies mainly pointed to the second half of this year (40%) and the first half of next year (40%), which is 6 months to 1 year after vaccination during the COVID-19 containment phase, and unanimously agreed that bold easing of anti-business regulations is necessary for rapid economic recovery.

One large corporation A argued, "The government should withdraw legislative efforts on corporate regulations such as the Serious Accidents Punishment Act and the Commercial Act amendment, or ease the application of existing regulatory bills." Another large corporation B also requested, "To escape from COVID-19, government support such as bold regulatory reforms for active corporate activities is necessary." Despite dozens of appeals from economic organizations last year to withdraw legislation, the ruling party swiftly passed the so-called ‘three corporate regulation laws’?the Commercial Act, the Fair Trade Act, and the Labor Union Act?in the National Assembly, and this year even passed the Serious Accidents Act, known as the ‘over-punishment law for executives.’

Regarding government support needed for early COVID-19 recovery, the next highest response rate was 22.5% for tax support such as investment tax credits. Large corporation C emphasized, "To recover the manufacturing industry, the core growth engine of the Korean economy, which has been depressed due to COVID-19, and to further develop our country’s industries, investment tax credits related to facilities or research and development (R&D) should be expanded." The vivid voices from the corporate field stress that economic stimulus measures that provide benefits to future-leading businesses such as eco-friendly or future mobility sectors while easing regulations are urgently needed.

Following that were early vaccination and introduction of vaccine passports (15%), and enhancement of labor flexibility such as expansion of special extended work hours (12.5%). Large corporation D said, "We hope that full efforts will be made for economic recovery through early vaccination." In addition, there were suggestions for stronger tax reduction policies such as cuts in individual consumption tax or fuel tax to stimulate consumption, and opinions demanding low-interest financial policy support for industries and companies affected by COVID-19.

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