[Reporter’s Notebook] Companies Discouraged by Political Influence... Hoping They Spread Their Wings for Growth Again

[Asia Economy Reporter Park Sun-mi] "Create an environment where companies can invest with peace of mind and generate quality jobs." (Comment released on the 10th by the Federation of Korean Industries)

The congratulatory and urging messages from business circles and economic organizations to President-elect Yoon Seok-yeol all converge on "creating a business-friendly environment." It is the most fundamental request that companies can make and reflects the expectation to change the management environment that has not been freely exercised due to political influence and intervention. It also encapsulates the long-standing dissatisfaction with regulations and labor reforms.

Throughout the election campaign, President-elect Yoon increased communication with the business community and made pro-business remarks. In the past, as a special prosecutor, he was known as the "business grim reaper" for prosecuting the heads of major conglomerates such as Samsung, Hyundai Motor, and SK Group one after another. However, as he pursued the presidency, his attitude changed 180 degrees.

He harshly criticized the Serious Accidents Punishment Act as a law that dampens the management will of businesspeople and showed empathy for the difficulties companies face regarding the 52-hour workweek system and the minimum wage system. This is why there is speculation that President-elect Yoon will be able to loosen the reins on companies.

In November last year, the Federation of Korean Industries released a survey conducted among members of the Korean Academic Society of Business Administration regarding the business environment. As a result, 62.3% evaluated Korea's business environment as lagging behind advanced countries. The most cited reasons were corporate regulatory burdens (39.4%) and increased employment costs (31.7%). Regulation and employment costs are among the most frequent issues where the political sphere intervenes in corporate management during public opinion campaigns. So much so that the phrase "political taming of companies" is often mentioned during national audits.

At a time when Korean companies should be competing with global corporations with full government support, they have been greatly discouraged by government constraints and have lost the confidence needed for competition. Even when they maximize performance through innovative management and contribute to the national economy, they are made to feel cautious in an atmosphere that views their success as a victory gained by taking something from someone else rather than being praised with "well done" or "thank you for your efforts."

As President-elect Yoon has pledged, it is hoped that he will become a president who listens to the voices of the business community and values the market. If a business-friendly environment is created, companies will become strong wings for economic growth through continuous innovation and challenges.

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