"If Elected President, This Is a Must"…What Business Leaders Hope from the New Government

KCCI and KFCM: "Create a Business-Friendly Environment"
Urgent Need to Enhance Corporate Vitality and Rebuild Foundations for Sustainable Growth

On the 8th, one day before the 20th presidential election, officials from Jongno-gu Office are setting up the Cheongunhyoja-dong 3rd polling station at the Cheongunhyoja-dong Community Center in Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Oh Hyung-gil] On the 9th, the 20th presidential election began. Business leaders, looking toward the newly formed government, are filled with both hopes and concerns. Amid growing economic uncertainties not only domestically but globally due to the spread of COVID-19 and Russia's invasion of Ukraine, expectations and demands placed on the new government are mounting.

The business community has urged the new government to create a 'business-friendly environment,' emphasizing the urgent need for policy support for the transition to digital-based innovative industries and sustainable development such as net-zero carbon neutrality.

According to the business sector, Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (KCCI), has held successive meetings with presidential candidates, delivering the business community’s demands in a document titled 'Hopes for the 20th Presidential Election, Economic Proposals for the Future.'

In January, the KCCI leadership conveyed difficulties and areas for improvement, stating, "Amid worsening international relations such as the strengthening of nationalism in the US-China hegemonic rivalry, competitive pressure from top-tier countries as we enter the ranks of economic powers, and the pressure to transition the manufacturing paradigm to carbon-neutral models, the path ahead is more challenging than before. It is difficult to achieve sustainable development with the current outdated engines and software."

They proposed the first major principle of our era as 'Rebuilding the foundation for sustainable economic growth,' presenting five agendas to achieve this: ▲Revitalizing economic vitality ▲New growth engines ▲Net-zero ▲Low birthrate ▲Proactive response to international relations.

Additionally, to 'Enhance the happiness of social members,' they recommended policies on jobs, safety, and a society where socially vulnerable groups can also be happy. Through 'Solutions and changes for national development,' they called for innovation in social integration and national development policy decisions.

The 2022 New Year's Economic Meeting was held on the 4th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, where Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry, delivered a greeting./Photo by Hyunmin Kim kimhyun81@

The Korea Employers Federation also conveyed business proposals to candidates across five areas: economy and jobs, labor-management relations, welfare and education, safety, and environment. Son Kyung-sik, Chairman of the Federation, requested bold regulatory reforms and active support to boost corporate vitality.

In the area of 'Enhancing corporate vitality as the shortcut to reviving the economy,' they proposed shifting the paradigm of corporate regulation and introducing a regulatory review process for legislative bills.

They also demanded the re-amendment of the Commercial Act and the Fair Trade Act, including abolishing the so-called '3% rule' related to the appointment of audit committee members, as well as tax system reforms such as lowering the highest rates of corporate and inheritance taxes.

In the 'Job creation, the key to Korea’s leap forward' sector, they suggested providing various incentives such as tax benefits for companies creating jobs. They also urged the expansion of flexible working hours and reform of the minimum wage system to increase women's participation in economic activities.

Regarding labor-management relations, under the theme 'Labor-management relations, the economic time bomb of Korea, it is time to modernize,' they highlighted the need to improve labor-management systems that do not meet global standards and proposed ways to build cooperative labor-management relations.

In particular, they proposed deleting criminal penalties for unfair labor practices by employers and called for correcting the current labor-related laws that are biased toward labor.

A business official said, "In a management environment where it is difficult to foresee even a step ahead, it is time to join wisdom and strength with the newly formed government," adding, "We plan to focus on continuously conveying the hardships of businesspeople and proposals for system improvements to the next government."

Lee Jae-myung, the Democratic Party presidential candidate, attended the CEO Talk of the Top 10 Groups titled "Let's Take Off Our Ties and Talk" held on the 12th at the Korea Employers Federation in Mapo-gu, Seoul. Before the event started, he received a management proposal letter from Sohn Kyung-shik, the chairman of the Korea Employers Federation. Photo by the National Assembly Press Photographers Group

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry attended a special lecture inviting presidential candidates alongside Yoon Seok-yeol, the presidential candidate of the People Power Party, on the 7th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by the National Assembly Press Photographers Group

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