Yoon and Economic Group Leaders Identify 'Obstacles to Corporate Growth'... Top Priority for Removal

New Government Announces Corporate Regulation Easing, Pro-Business Moves
"Punitive Focus of Serious Accident Act... Many Concerns for Companies"

President-elect Yoon Suk-yeol is delivering a greeting at a luncheon meeting with the heads of six economic organizations held on the 21st at the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Oh Hyung-gil] "The government's role is to remove institutional obstacles so that companies can make decisions more freely, invest freely, and grow." (President-elect Yoon Suk-yeol)

As President-elect Yoon pledged to eliminate obstacles to corporate growth during his first meeting with the heads of six economic organizations, attention is focused on the first target where hurdles will be lowered. With the new government signaling a pro-market and pro-business stance, it is expected that representative and symbolic regulations will be the top priority for revision. In the market, the Serious Accidents Punishment Act, which is a common issue for both large and small businesses and was unanimously mentioned during the meeting, is being discussed.

According to the business community on the 22nd, President-elect Yoon met with the heads of six economic organizations at the Presidential Transition Committee office in Jongno-gu, Seoul, the previous day, stating, "Although changes are already underway, the economy must now transform from government-led to private sector-led," and added, "I have strong faith in the free market economy."

Attendees included Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry; Sohn Kyung-shik, Chairman of the Korea Employers Federation; Huh Chang-soo, Chairman of the Federation of Korean Industries; Kim Ki-moon, Chairman of the Korea Federation of SMEs; Koo Ja-yeol, Chairman of the Korea International Trade Association; and Choi Jin-sik, Chairman of the Korea Federation of Medium-sized Enterprises. This was the first meeting with the business community since the election.

President-elect Yoon reiterated, "The government's role is to remove factors that hinder companies from operating freely," signaling a pro-business approach. This reflects his intention to lower the hurdles posed by various regulations surrounding companies. Accordingly, attention is focused on the first issue proposed by the heads of economic organizations at this meeting.

President-elect Yoon Suk-yeol attended a luncheon meeting with the heads of six economic organizations at the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul on the 21st, greeting Chairman Sohn Kyung-shik of the Korea Employers Federation. Photo by Yoon Dong-ju doso7@

In the business community, the Serious Accidents Punishment Act, which both large and small companies commonly point out as problematic, is expected to be prioritized. Since its enforcement on January 27, there have been strong calls from the industry to improve the act due to unclear provisions and its focus on punishment rather than prevention.

Chairman Sohn Kyung-shik said, "Companies are very concerned because the Serious Accidents Punishment Act is punishment-centered," and added, "The act should be revised to fit reality, and instead, accident prevention activities should be significantly strengthened."

Chairman Huh Chang-soo also urged, "While safety is important, the Serious Accidents Punishment Act, which treats business owners as potential criminals, needs to be supplemented to align with global standards." Chairman Kim Ki-moon stated, "Large companies are minimally affected by the Serious Accidents Punishment Act, but it applies to small businesses subcontracted by them," demanding legal improvements. According to surveys conducted by the Korea Employers Federation and the Korea Federation of SMEs, the Serious Accidents Punishment Act was identified as the most burdensome regulation for companies this year.

President-elect Yoon has also repeatedly emphasized the need to supplement the Serious Accidents Punishment Act during his candidacy. In January, he stressed, "We need to focus on prevention and refine related enforcement decrees so that business operators do not lose motivation, ensuring rational enforcement and reasonable consideration in its application to reality."

Labor-related law revisions, such as flexibilization of the 52-hour workweek system and improvement of the minimum wage system, are also likely to be included in the priority revision list. The 52-hour workweek system is expected to see expanded exceptions, especially for startups. President-elect Yoon stated in a policy Q&A with the startup industry, "We will expand labor hour flexibility by including newly established startups in the special extended work hours or special extended work categories."

Regarding the minimum wage system, he pointed out, "While it would be good to raise wages, if small businesses that cannot afford to pay are forced to raise wages to the same level as large companies, workers willing to work for slightly less than the minimum wage will lose their jobs." It is expected that the government will reflect business demands in the system by slowing the pace of minimum wage increases and differentiating minimum wages by industry and business size.

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