"Drastic Deregulation of Manufacturing Industry Needed, Adoption of US-Style Two-for-One Rule"
Business Community "Manufacturing Competitiveness Worsens, Next Government Must Significantly Ease Regulations"
[Asia Economy Reporter Changhwan Lee] With the presidential election just over two months away, the business community has proposed the enactment of the American-style Two-for-one rule, which mandates that for every new regulation introduced, two existing regulations must be abolished.
As global economic uncertainties grow, the competitiveness of South Korea's manufacturing sector continues to decline, prompting the presidential election camps of various parties to urgently call for bold regulatory easing measures aimed at enhancing corporate competitiveness.
The Korea Industrial Alliance Forum (KIAF) held an industrial development forum on the morning of the 22nd at the Automobile Hall in Seocho-gu, Seoul, under the theme "The Crisis of Our Manufacturing Industry and Response Tasks," emphasizing that the next government must actively pursue regulatory relaxation to strengthen manufacturing competitiveness.
The forum explained that the share of manufacturing in the country's Gross Domestic Product (GDP) has been declining annually since peaking in 2011. The contraction of manufacturing is mainly attributed to deteriorating business conditions caused by increased production costs due to the 52-hour workweek system and minimum wage hikes, as well as strengthened corporate regulations such as expanded punitive damages.
The forum argued that the decline in manufacturing competitiveness could directly lead to economic deterioration in South Korea, which is export-oriented, and therefore the next government should focus on revitalizing the manufacturing sector.
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In particular, regulatory easing was identified as the top priority. The business community emphasized the introduction of a "negative regulation" system, which permits everything except what is prohibited by law, and actively pushing for the enactment of the American-style Two-for-one rule legislation.
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