Industrial Union Forum Hosts Presidential Candidate Policy Debate: "Support for Manufacturing and Regulatory Reform Must Be Achieved"

Lee Jae-myung and Yoon Seok-yeol Present Policy Directions via Reading and Video Congratulatory Speeches
Industrial Union Forum Conveys 11 Proposals for Revitalizing Manufacturing Industry

[Asia Economy Reporter Kiho Sung] The Korea Industrial Alliance Forum (KIAF) held the "Policy Debate for Presidential Candidates on Diagnosing the Crisis and Leap of the Manufacturing Industry Inviting 3 Million Manufacturing Workers" on the 24th. Presidential candidates promised to undertake regulatory reforms along with various policy supports to build a manufacturing powerhouse.

At the debate, Lee Jae-myung, the Democratic Party presidential candidate, delivered a congratulatory message read by party lawmaker Kim Kyung-man, stating, “In this era of great transformation, our manufacturing sector is seeking revolutionary changes to improve productivity in traditional manufacturing and transition to an industry that expands employment,” and emphasized, “The government must boldly support the manufacturing sector’s innovation efforts with policies like Germany’s Industry 4.0 and the U.S. Manufacturing Renaissance.”

He continued, “To support manufacturing innovation and global market entry, regulatory rationalization must also be achieved,” and stressed, “We will actively review the proposals for establishing a global testbed and regulatory rationalization in the manufacturing sector suggested by the Industrial Alliance Forum.” He added, “Through the tradition and development of public-private joint efforts, we will achieve an explosive employment manufacturing industrialization that surpasses the employment-expanding manufacturing industrialization of the U.S. and Germany.”

Yoon Seok-youl, the People Power Party presidential candidate, in a video congratulatory message, said, “Although we are a country lacking natural resources such as minerals and oil, we have become the world’s 10th largest economy by achieving remarkable industrial development based on a solid manufacturing foundation. However, in the rapidly changing environment recently, our manufacturing industry stands at a crossroads between leap forward and stagnation,” diagnosing, “Between emerging manufacturing powers like China and Vietnam and traditional manufacturing advanced countries such as the U.S., Germany, and Japan, 180,000 manufacturing jobs have disappeared in our country, putting the manufacturing industry, the backbone of our economy, in a serious crisis.”

He added, “It is time to review and transform manufacturing policies with vigilance to improve the manufacturing sector’s structure,” emphasizing, “Above all, excessive regulations must be improved so that the industry’s creativity can be fully unleashed, and the digital transformation of the entire manufacturing sector must be actively supported to prepare for a new leap in Korea’s industry. We will spare no support for the revival and leap of Korean manufacturing.”

Jung Manki, Chairman of the Korea Industrial Federation Forum / Photo by Mun Honam munonam@

Following the congratulatory messages from the presidential candidates, the industry sector made substantial policy proposals at the debate. Chung Manki, chairman of KIAF, stated, “While foreign direct investment (FDI) in manufacturing is increasing, our overseas direct investment ratio rose from 3.8 times in 2019 to an expected 17.6 times in 2026, raising concerns about industrial hollowing out,” and warned, “The next president might face a situation of handing over a weakened economy to the following administration.”

He explained, “Our manufacturing crisis is also due to various external factors such as the normalization of pandemics, expanded greenhouse gas regulations, digitalization spread, rearmament of manufacturing in advanced countries, global supply chain disruptions, China’s rise, and intensified U.S.-China conflicts,” diagnosing, “Especially, China’s rapid economic and technological growth, the concentration of rare metals like rare earth elements in China, and China’s control over global mines for batteries have placed our manufacturing industry in a difficult situation.”

Chairman Chung pointed out, “Although R&D quantitative investment is world-class, low productivity due to discriminatory policies against large corporations, high labor rigidity and low productivity, rapid workforce aging and low birth rates, income and purchasing power polarization, and continuous strengthening of corporate regulations are various domestic factors of the manufacturing crisis,” and noted, “In particular, government regulations ranked Korea 87th out of 141 countries in the WEF 2019 competitiveness evaluation, comparable to Bangladesh at 84th and Ethiopia at 88th.”

Along with this, Chairman Chung proposed tasks for the next government to ensure at least equal competition with foreign countries, if not advantageous, including ▲ Establishment and operation of a 'Manufacturing Innovation Strategy Meeting' chaired by the president ▲ Introduction of the 'two-for-one rule' to abolish outdated regulations ▲ Flexible operation and supplementation of the 2050 carbon neutrality and 2030 carbon reduction plans ▲ Active fostering of the hydrogen industry and hydrogen utilization industries ▲ Expansion of the manufacturing revolution through manufacturing digitalization ▲ Strengthening the public sector’s role in overseas resource development and securing raw materials ▲ Promotion of labor reforms including labor flexibility ▲ Removal of entry barriers for industrial innovation and consumer welfare ▲ Strengthening government organizations for manufacturing innovation ▲ Policy reforms to improve R&D productivity ▲ Promotion of educational reforms in preparation for the Fourth Industrial Revolution era, totaling 11 proposed items.

Subsequently, a discussion was held chaired by Hong Seok-woo, president of Sangji University (former Minister of Knowledge Economy), attended by representatives of major industries, Kim Tae-gi, honorary professor at Dankook University, Lim Chae-sung of the Democratic Party, and Jung Myung-ae, vice-chair of the Science and Technology Innovation Economy Special Committee of the People Power Party’s National Sympathy Future Policy Group.

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