[Yoon Seok-yeol Elected] Economic Groups Urge "Urgent Regulatory Relief and Labor Reform... Create a Business-Friendly Environment" (Comprehensive)

FKI and KCCI Congratulate Yoon Suk-yeol on Election Victory
Emphasize Need for Private Sector-Led Economic Paradigm Shift

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Economic organizations have urged Yoon Seok-yeol, the president-elect of the 20th Republic of Korea, to create a business-friendly environment to boost economic vitality. They particularly emphasized the need to establish a private sector-led economic growth paradigm through deregulation and enhanced labor market flexibility.

On the 10th, the Korea Chamber of Commerce and Industry (KCCI) requested President-elect Yoon to create a "business-friendly environment" based on regulatory reform and labor reform in a statement. The KCCI stated, "We ask that you heal the various disagreements and conflicts revealed during the election process and unite national capabilities with leadership of integration and harmony to lead the country and society toward development and economic resurgence."

It added, "Given the structural changes in the global economy and increasing geopolitical uncertainties, we urge you to raise the potential growth rate through private sector-led growth, which you have consistently emphasized, and to complete regulatory and labor reforms without delay."

The Federation of Korean Industries (FKI) also called on President-elect Yoon to increase labor market flexibility and improve regulations to establish a private sector-led economic growth paradigm. The FKI said in a statement, "The recent economy is in a very difficult situation due to sluggish domestic demand and low birthrate and aging population," adding, "The leadership of the president-elect is more important than ever."

It continued, "We hope that you will create an environment where our companies can invest with confidence and create quality jobs by enhancing labor market flexibility and establishing a private sector-led growth paradigm through regulatory innovation."

The Korea Employers Federation (KEF) likewise urged the creation of an environment where free economic activities and entrepreneurial spirit, based on regulatory reform and advancement of labor-management relations, are respected. The KEF said, "The election results reflect the people's desire for the establishment of a free market economy, economic growth, and a national order based on law and principles," and requested efforts to improve laws and systems for regulatory reform and advancement of labor-management relations.

It particularly emphasized, "The next five years will be a critical period to overcome economic crises amid rapidly changing international political and economic environments externally," and urged President-elect Yoon to create an environment where companies can continuously innovate and challenge themselves for the resurgence of the Korean economy.

The Korea International Trade Association (KITA) asked for focused efforts on trade structure innovation and restoring export dynamism. KITA suggested, "We expect systematic management of supply chains, which are the lifelines of industry, and bold investment in future new industries along with regulatory reform to contribute to enhancing export competitiveness and creating quality jobs."

The strong call for "leadership" from President-elect Yoon by major economic organizations reflects the recognition that the domestic and international conditions facing the Korean economy are precarious. Globally, the strengthening of protectionism by various countries, supply chain disruptions, and Russia's invasion of Ukraine, as well as domestic challenges such as sluggish domestic demand and aging population, are piling up as adverse factors. An industry insider evaluated, "The new government must lead comprehensive support measures and regulatory improvements for economic revitalization more strongly than ever."

Meanwhile, economic organizations unanimously expressed their commitment to fulfilling corporate social responsibility and actively cooperating with the new government's policies. The KEF and FKI emphasized that they will actively devote themselves to their core roles, such as bold investment and job creation. The KCCI also stated that it will fulfill its role as a partner to help the next government successfully carry out state affairs.

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