Business Community Requests "Change to Negative Regulation"... Yoon Assures "No Loss Due to Government"

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, Offers Advice to Candidate Yoon Seok-yeol
Requests Made Every Election... Evidence of Ongoing Regulatory Risks
"Need to Boost Growth Potential... Urging the Government for Proactive Investment"

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry (right) is delivering "Economic Proposals for the Future" to Yoon Seok-yeol, the People Power Party's presidential candidate, who visited the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 16th. Photo by National Assembly Press Photographers Group

[Asia Economy Reporter Choi Dae-yeol] On the 16th, Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won met with Yoon Seok-yeol, the presidential candidate of the People Power Party, and requested to "reform outdated legal systems," reflecting the ongoing regulatory risks in corporate management.

He asked for a shift from the minimum permissible regulation (positive regulation), which legally defines what companies can do, to minimum regulation (negative regulation), which specifies what should not be done and allows everything else. This was also mentioned during a meeting with Lee Jae-myung, the Democratic Party presidential candidate, last month. Regulatory reform is a recurring topic in every election, indicating a lack of progress.

Both ruling and opposition presidential candidates have promised to adopt negative regulation and proactively reform the system, drawing attention to how this will be incorporated into their election pledges. At the meeting held at the KCCI building that day, Chairman Chey said, "If we think about creating in the market going forward, the regulatory framework should shift to a positive-type system," adding, "Companies understand that it cannot be done all at once, but I believe it can be changed step-by-step into a predictable form."

In response, candidate Yoon said, "Our legal system prohibits any business not specified by law, but unlike us, the Anglo-American legal system regulates what should not be done through behavioral regulations," and added, "Unless it concerns public safety, we will thoroughly change the system to a negative behavioral regulation."

The business community also urged to boost growth potential. Although outwardly the economic situation does not look bad, with South Korea's export performance expected to hit an all-time high this year, the underlying reality is not so bright.

Years of low birth rates and aging have eroded growth engines, resulting in the lowest potential growth rate among OECD countries. The possibility of being caught in the US-China hegemonic competition, the top two trading partners, remains, and to address climate change, carbon-based energy sources that have supported traditional manufacturing must be replaced. The COVID-19 pandemic, which has lasted over two years without improvement, has devastated self-employed and service sectors that account for a significant portion of domestic jobs.

The business community's primary expectation for the 20th presidential candidates is to rebuild the foundation for sustainable economic development. Given the many internal and external changes compared to the past, missing the right time to respond could lead to falling behind at any moment.

Chairman Chey said, "Please invest in creating potential for future growth and infrastructure," adding, "If the state proactively invests in talent development and SOC investment, which individual companies find difficult during this transition period of digital transformation, carbon neutrality, and hegemonic competition, it will serve as a stepping stone to create future growth engines and boost growth." Candidate Yoon responded, "We will supply customized talent to meet the new employment demands companies need and create jobs aligned with the demand-supply paradigm."

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry (left) is entering side by side with Yoon Seok-yeol, the People Power Party's presidential candidate, who visited the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 16th. Photo by National Assembly Press Photographers Group

Chairman Chey handed candidate Yoon a proposal containing the business community's expectations. This was prepared in early October before the ruling and opposition candidates were finalized and delivered to major political parties, reflecting voices from regional chambers of commerce and various member companies. Previously, after Lee Jae-myung, who has a strong 'pro-labor' stance, was confirmed as the ruling party candidate, he met with the KCCI chairman group representing employers, while candidate Yoon first visited the Federation of Korean Trade Unions the day before and then met with the KCCI chairman group on this day.

Earlier, candidate Lee also said at a KCCI chairman meeting last month, "For creative companies to discover new industries and gain international competitiveness through innovation, we need to clearly designate dangerous and prohibited areas and otherwise allow freedom, regulating ex post if necessary, in so-called negative regulation." The KCCI, during former chairman Park Yong-man's tenure, created a regulatory sandbox to provide conditions for companies to operate more autonomously.

There was also consensus that 'economic security' has become more important than in the past. Candidate Yoon said, "I plan to completely reorganize government organizations and operational patterns so that diplomacy, economy, and industry can be managed under a consistent policy framework," adding, "The Blue House Security Office will comprehensively review supply chains necessary for companies, considering economic security in addition to military security."

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry (right) and Lee Jae-myung, the Democratic Party presidential candidate, are delivering a proposal booklet at a meeting held on the 10th of last month.

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